Living
From the archives: Gays among heroes, victims of Sept. 11
Our archives piece profiling many of the LGBT dead found in the 5th anniversary of the Sept. 11 attacks issue.
This piece ran in the Blade’s five-year anniversary issue in September 2006. It lists some of the known LGBT victims of the Sept. 11 attacks and shows that families of all types were affected by the terrible events of that tragic day. It also shows that many of the 9/11 heroes who saved countless lives were lesbian, gay, bisexual or transgender.
RENEE BARRETT-ARJUNE
Irvington, N.J.
Renee Barrett-Arjune, 41, was working in One World Trade Center at the time of the attacks. An accountant for Cantor Fitzgerald, she was able to escape the building prior to its collapse.
However, she suffered serious burns in the attack, and was hospitalized at Cornell-Presbyterian Hospital, where she died more than a month later on Oct. 18, 2001.
Barrett-Arjune had been a member of the Metropolitan Community Church of New York. She left behind her partner, Enez Cooper, and her 18-year-old son, Eddie, who lived with them.
GRAHAM BERKELEY
Boston
Graham Berkeley, 37, a native of England who lived in Boston, boarded United Airlines Flight 175 on Sept. 11, 2001, on his way to a conference in Los Angeles. He died when the plane became the second highjacked airliner to crash into the World Trade Center.
Berkeley’s parents, Charles and Pauline Berkeley, still live in England and watched the crash on television, although it took eight hours to confirm that their son had been on the plane.
“We had seen the fireball ourselves and knew to expect the worst,” Charles Berkeley told the London Mirror. “We watched our child die. He was a brilliant boy, a brilliant man.”
Graham Berkeley worked for Compuserve as product management director and was a professional violinist in Germany and England, the Advocate reported.
MARK BINGHAM
San Francisco
Gay rugby enthusiast Mark Bingham has been hailed as one of a small group of heroes who fought back against hijackers on United Flight 93, which crashed in Pennsylvania. The flight was believed to have been headed to Washington, D.C., likely to attack another national landmark.
Bingham, 31, was a member of the San Francisco Fog, a gay rugby team, and planned to organize a rugby team for this year’s Gay Games in Sydney, Australia.
A tribute page hosted by the team includes an e-mail from Bingham after he had learned that the Fog had been accepted as a permanent member of the California Rugby Football Union.
“Gay men weren’t always wallflowers waiting on the sideline,” he said, applauding the team’s acceptance into the league. “We have the opportunity to let these other athletes know that gay men were around all along — on their little league teams, in their classes, being their friends.”
PAMELA J. BOYCE
New York
Pamela J. Boyce, 43, was a resident of Dyker Heights, Brooklyn, and worked on the 92nd floor of One World Trade Center as assistant vice president of accounting for the New York office of Carr Futures.
Catherine Anello, Boyce’s partner, told the New York Times that Boyce was a no-nonsense person who wouldn’t want her loved ones to be overcome by grief.
“If there was someone who lost a loved one and had been grieving too long, so that they were not living their life, she would say, ‘Stop. It’s not what they would want. They are in a better place.'” Anello said, “She said, ‘I’m not afraid to die because I know where I am going is beautiful.'”
DANIEL BRANDHORST
RONALD GAMBOA
DAVID REED GAMBOA BRANDHORST
Los Angeles
When Daniel Brandhorst and Ronald Gamboa changed their flights so they could return to Los Angeles from Boston on Sept. 11 with adopted son, David, they had no idea of the tragedy that would await them.
Brandhorst and Gamboa had met 13 years ago at a party. Family friend Donato Tramuto told the New York Times Gamboa “could make a rainy day look happy.” Meanwhile, Scott Pisani, a fellow employee at PriceWaterhouseCoopers, said Brandhorst “made a tremendous amount of time for his family” after David was born, and would often take the toddler to work.
David, 3 at the time of his death, was adopted at birth by Gamboa and Brandhorst. Brandhorst, 41, worked an accountant for PriceWaterhouseCoopers, and Gamboa, 33, was the manager of a Gap store. They were on United Airlines Flight 175.
DAVID CHARLEBOIS
Washington, D.C.
David Charlebois, 39, first officer on American Airlines Flight 77, which collided into the Pentagon after being hijacked by terrorists, died while flying one of his standard routes.
Charlebois lived near the District’s popular Dupont Circle neighborhood with his partner of 14 years, Tom Hay, and their border collie, Chance.
He began his career as a pilot for corporate executives and later worked as a pilot for U.S. Airways. He joined American Airlines a decade ago, where he served as first officer, or co-pilot, flying mostly transcontinental routes out of Dulles International Airport.
Hay said Charlebois’ loyalty to his friends, family, and community was rivaled only by his love for flying.
“He always wanted to be a pilot,” Hay said.
Charlebois was an active member of the National Gay Pilots Association and had worked quietly within his company as an advocate for rights of gay employees, including gay pilots.
EUGENE CLARK
New York
Eugene Clark, 47, observed “the three D’s: dance, drama and divas,” according to the New York Times. His partner of 13 years, Larry Courtney, said Clark had grown up listening to Roberta Flack, loved Broadway musicals and could dance “like Tina Turner… and he had legs almost as good.”
Clark worked for the Aon Corporation as an administrative assistant, but it was his time away from the office that he enjoyed most. He had converted a 10-foot by 24-foot concrete-slab patio into a thriving terrace garden.
He also “adored the musicals ‘Miss Saigon’ and ‘Les Miserables,’ cooked Southern-style fried cabbage, and collected Waterford crystal decanters and vases,” the Times reported.
JEFFREY COLLMAN
Jeffrey Collman, 41, a flight attendant on American Airlines Flight 11, died when the hijacked jet slammed into the North World Trade Center tower in the first attack of Sept. 11, 2001.
A three-year employee of American Airlines, Collman had changed to the Boston-Los Angeles route from his normal Boston-San Francisco flights in order to prepare for an upcoming vacation.
Keith Bradkowski, Collman’s partner, had last heard from him the evening prior to the crash, when Collman called to talk about their upcoming trip, according to the San Jose Mercury News.
Collman received the American Professional Flight Attendant Award in 1999. In addition to Bradkowski, the Illinois native was survived by one sister and four brothers.
LUKE DUDEK
Livingston, N.J.
Luke Dudek and his partner of 20 years, George Cuellar, had dreamt of buying a building to house their high-end floral design store.
On Sept. 11, 2001, that dream finally became a reality. But Dudek, 50, wasn’t there to celebrate, according to Newsday.com.
Dudek was working as a food and beverage controller at Windows on the World, the restaurant at the top of One World Trade Center, that morning, when terrorist planes struck the building.
Dudek’s partner, George Cuellar, continues to run the flower shop he operated with Dudek for 16 years. He said the couple had no regrets in life.
“Everything we did, we did with love,” Cuellar told Newsday. “He’ll always be my best friend. I feel very protected by him. And I always did.”
JOE FERGUSON
Washington, D.C.
James Joe Ferguson, director of geography education outreach for the National Geographic Society, was on American Airlines Flight 77 when it crashed into the Pentagon. Ferguson was traveling on a National Geographic-sponsored educational field trip to the Channel Islands National Marine Sanctuary off Santa Barbara, Calif.
Ferguson, 39, was accompanying a colleague, three teachers, and three sixth-grade students, all from Washington, on the trip.
Ferguson lived on Capitol Hill for 10 years with Winston, his wire-haired fox terrier. He was one of the principal architects who designed the infrastructure of geography education, which resulted in the improvement of geography education throughout the United States, according to National Geographic.
“Ultimately, what he did touched over 150,000 students and teachers — and that is just one person,” said Ed Kaczmarek, a friend of Ferguson’s for 14 years.
CAROL FLYZIK
Plaistow, N.H.
Carol Flyzik, a 40-year-old registered nurse and a member of the Human Rights Campaign, was on American Airlines Flight 11 on her way to California when her plane became the first to crash into the World Trade Center.
Flyzik was a marketing supervisor for Meditech, a software company that serves the medical community. She was headed to California on a business trip at the time.
She left behind a partner of nearly 13 years, Nancy, as well as three stepchildren whom she cared for as her own.
SHEILA HEIN
University Park, Md.
Sheila Hein, an analyst, was working for the U.S. Army’s management and budget office in the Pentagon when American Airlines Flight 77 crashed into it.
Hein, 51, lived with her partner of 17 years, Peggy Neff, in University Park, Md. They bought a house there seven years ago as a “fixer-upper” and turned the backyard into their “own private park,” Neff told the Washington Post. “She is what this yard is. There’s a whole lot of love here,” Neff said.
Hein worked at the Pentagon for the last five years as a visual information specialist for the Army and had only recently changed jobs. She was at the Pentagon that day taking part in an Army internship, studying manpower analysis. A native of Springfield, Mass., she joined the Navy after high school and was sent to Virginia. She spent 10 years in the service as a photographer, married twice, and ventured into a career in computer graphics, working on government contracts.
Hein received a bachelor’s degree from Columbia Union College three years ago after taking courses on and off for 20 years. “She decided it was time to finish it,” Neff told the Post. She planned to get a master’s degree.
MYCHAL JUDGE
New York
New York City Fire Department Chaplain Mychal Judge was killed during the collapse of the World Trade Center towers while administering last rites to a dying firefighter. Fellow firefighters carried his body to St. Peter’s Church and then back to the firehouse.
Judge, 68, had been a Catholic chaplain for the New York City Fire Department since 1992. “Father Mike,” as the gay priest was known, was laid to rest in a memorial service attended by more than 3,000 and presided over by Cardinal Edward M. Egan.
Judge was also a “longtime member” of Dignity/USA, according to the Web site of the organization for “gay, lesbian, bisexual and transgendered Catholics, our families and friends.”
WILLIAM ANTHONY KARNES
New York
William Anthony Karnes and his partner, John Winter, could see Karnes’ office at Marsh & McLennon on the 97th floor of One World Trade Center from the home they shared.
On the morning of Sept. 11, 2001, the 37-year-old Karnes left for the office as usual at 8:30 a.m. The “commute,” which took about 11 minutes, would be his last. At 8:45, Winter heard what sounded like a thunder, and immediately looked out his apartment window.
“At that point, I knew probably a lot of hope was lost that I’d ever see him again,” Winter told LGNY. “Death doesn’t discriminate. Death actually transcends sexual orientation.”
JACK KEOHANE
New York
John Keohane, 41, worked at One Liberty Plaza near the World Trade Center and died when the towers collapsed. After the planes hit the Trade Center towers, Keohane met Mike Lyons, his partner of 17 years, on the street, and called his mother from his cell phone.
“They were just in the streets like everybody else,” his sister, Darlene Keohane, told the San Francisco Chronicle. “As he was talking, he had thought a third plane crashed into the building.”
What Keohane thought was a third crash was really the collapse of the South tower of the World Trade Center. While Lyons survived, Keohane was killed by falling debris.
A native of San Francisco, Keohane had lived in the New York area for a year. Distraught over Keohane’s death, Lyons committed suicide on March 1.
MICHAEL LEPORE
New York
Michael Lepore’s friends now take care of his rosebushes and plants in the garden that had been his pride and joy.
“We used to say nothing bad could ever happen here,” Lepore’s partner of 18 years, David O’Leary, told the New York Times. “And it’s still the most important thing. It’s where I see most of Michael.”
Lepore, 39, was a project analyst at Marsh & McLennan. He shared a home, designed by Frank Lloyd Wright apprentice Edgar Tafel, with O’Leary and their three cocker spaniels, and the couple was in the midst of helping to plan Lepore’s youngest brother’s wedding.
O’Leary said, a month prior to the attacks, their house had been bustling with friends and family.
“Everything was so perfect in our lives,” he said. “Just so perfect.”
PATRICIA McANENEY
New York
Patricia McAneney, 50, always wanted to be a firefighter. While she never actually became one, she did serve as fire marshal for the floor in One World Trade Center where her employer, Guy Carpenter insurance company, had its offices.
Her friends and partner remembered her for her honesty.
“If one of us committed a crime, Pat would be the last person we could go to because she would turn you in,” McAneney’s partner of nearly 20 years, Margaret Cruz, told the New York Times. “She said she might give me a few hours’ head start.”
WESLEY MERCER
New York
Wesley Mercer, the vice president of corporate security for Morgan Stanley, was generally a quiet man. But his partner, Bill Randolph, told the New York Times that Mercer also could be a leader during a crisis.
That’s what he did on Sept. 11, 2001. The World Trade Center towers fell as Mercer helped evacuate other employees
“It put a hole in my stomach,” Randolph told the paper. “But I knew that’s what he would have done.”
Mercer, who was divorced and had two daughters, became a security officer after serving in the military, and was known for his formal style. “He always thought the way he carried himself was important,” Randolph said.
PHILIP “ROXY EDDIE” OGNIBENE
New York
“Roxy Eddie” Ognibene, a member of the Renegades of New York’s Big Apple Softball League, was killed last Sept. 11 while working as a bond trader for Keefe, Bruyette & Woods on the 89th floor of Two World Trade Center, according to Outsports.com.
Ognibene, 39, was considered by his friends to be “a strong lefty hitter, a flawless first baseman,” and a solid pitcher and outfield player, the gay sports Web site reported. Those who knew him said his sense of humor was contagious, and just to see him was to laugh out loud.
Although his work often left him too busy to pursue outside hobbies, Ognibene had a love of softball and had just recently joined the league. During one particularly nasty practice, which occurred in the middle of a downpour, Ognibene was the last to leave the field.
“I don’t care,” he said, friend Ben Moon recounted to Outsports. “I just love to play softball.”
CATHERINE SMITH
New York
Catherine Smith, 44, worked on the 92nd floor of the first World Trade Center tower as a vice president for Marsh & McLennon when tragedy struck last Sept. 11.
Smith and her partner of six years, Elba Cedeno, considered themselves very similar to Pepe Le Pew and Penelope from the Looney Tunes cartoons, according to the New York Times. “They had known each other, in passing, for 20-odd years, both frequenting the same bar,” the paper reported. Later, when both had ended other relationships, they officially met.
The two were together for six years.
“This was my soul mate. We planned to live the rest of our lives together and retire together,” Cedeno said.
From staff and wire reports
Real Estate
Tips for LGBTQ buyers, sellers during holidays
A powerful and overlooked window for real estate transactions
The holiday season is a magical time, filled with celebration, travel, connection, and reflection. It also happens to be a powerful — and often overlooked — window for both buying and selling real estate. For members of the LGBTQ+ community, shopping for a new home or preparing to list a property during the holidays comes with opportunities, challenges, and important considerations that deserve thoughtful attention.
Whether you’re preparing to make a move as a same-sex couple, searching for safe and affirming neighborhoods, or hoping to secure the best possible price for your home sale before the new year, the holidays can offer unique advantages. With an inclusive approach, LGBTQ+ friendly resources, and the right professional guidance, this season can be a strategic and rewarding time to take your next real estate step.
Below are actionable tips, insights, and resources specifically tailored to LGBTQ+ home buyers and sellers navigating the holiday season.
Why the Holidays Can Be the Right Time
Lower Competition & Motivated Sellers
Because so many people put their real estate plans on pause during November and December, LGBTQ+ home buyers may see lower competition, fewer bidding wars, and sellers who are eager to close before January. This can bring real advantages for first-time gay home buyers or same-sex couples seeking more favorable negotiating terms.
Buyers Are More Serious
If you’re selling your home as an LGBTQ+ individual, remember: holiday buyers tend to be more intentional, financially prepared, and timeline-driven. This can make the sale process smoother.
Holiday Appeal Helps Homes Show Better
Warm lighting, seasonal décor, and neighborhood festivities can enhance curb appeal and emotional impact — which can be especially valuable when selling your home.
Tip #1: Choose LGBTQ-Friendly Representation
Above all else: work with a professional who understands the LGBTQ+ community and the unique concerns LGBTQ+ clients have.
This means choosing:
- a gay realtor
- a lesbian realtor
- an LGBTQ+ friendly real estate agent
Agents who are part of, or deeply familiar with, the LGBTQ+ community can make a tremendous difference in safety, comfort, and confidence throughout the transaction.
For more than 30 years, GayRealEstate.com has been the trusted leader in LGBTQ+ real estate, providing LGBTQ+ home buyers and sellers access to:
- verified LGBTQ+ real estate agents
- same-sex couple home buying experts
- LGBTQ+ friendly realtors near you
- agents experienced in discrimination-related protections
- LGBTQ+ relocation specialists
Whether you’re buying or selling, this starts you on the right path.
Tip #2: Focus on LGBTQ-Friendly Neighborhoods
If you’re buying a home during the holidays, make researching neighborhoods a top priority.
Look for areas known for:
- Inclusion & diversity
- Active local LGBTQ+ groups
- Gay-friendly businesses
- Visible LGBTQ+ community presence
- Supportive schools & services
- Pride events & alliances
Searching online helps — but talking with an LGBTQ+ friendly realtor who knows these neighborhoods firsthand is invaluable.
Also search:
- LGBTQ+ crime statistics
- local anti-discrimination policies
- protections against housing discrimination
- hate crime data
- political climate
- HOA regulations
Your home should feel safe year-round, not just festive in December.
Tip #3: Know Your Legal Protections
Housing discrimination still exists — and LGBTQ+ home buyers and sellers must remain vigilant.
While federal protections exist through the Fair Housing Act (as interpreted to include sexual orientation and gender identity), not all states provide equal protection.
Know your rights around:
- Mortgage discrimination
- Rental screening discrimination
- Sellers refusing offers from LGBTQ+ buyers
- HOA discrimination
- Harassment after move-in
Your agent should be able to assist — but GayRealEstate.com also offers educational guidance and resources for navigating LGBTQ+ legal protections in real estate
Tip #4: Navigate the Emotional Side
For LGBTQ+ buyers and sellers, the holidays can stir up complex feelings:
- family dynamics
- financial pressure
- expectations around marriage or partnership
- relocation stress
- memories tied to a home
Be patient with yourself.
Buying or selling a home is life-changing — honor the emotional journey as much as the financial one.
Tip #5: Take Advantage of Holiday Cost Savings
Buying?
- Lower interest rates may appear around December
- Contractors often discount home inspections & repairs this time of year
- Movers run holiday promotions
Selling?
- Minor seasonal upgrades help tremendously:
- warm lighting
- new evergreen planters
- festive front door accents
- Be careful not to over-decorate — buyers need to see the space clearly
And yes — holiday cookies help.
Tip #6: If You’re Relocating — Plan Ahead
Many LGBTQ+ buyers relocate during the holidays to:
- be closer to family
- move in with a partner
- begin a new job in the new year
If you’re relocating as an LGBTQ+ couple or family:
- research local LGBTQ+ resources
- connect with local LGBTQ+ organizations
- ask your gay real estate agent about local LGBTQ+ clubs, groups, and services
- evaluate long-term safety for LGBTQ+ families
Plan early — December moves get booked fast.
Tip #7: Use Trusted LGBTQ Real Estate Resources
The most important resource of all:
GayRealEstate.com — the #1 dedicated LGBTQ+ real estate resource for over 30 years.
On GayRealEstate.com, you can find:
- LGBTQ+ friendly real estate agents nationwide
- Verified gay and lesbian Realtors
- LGBTQ+ real estate market information
- Same-sex couple home buying guidance
- LGBTQ+ real estate services
- Gay and lesbian friendly neighborhoods
- Relocation tools
- LGBTQ+ home buyer & seller education
No other site offers this level of specialization, expertise, or community connection.
The holidays are more than just a season of celebration — they’re also a meaningful opportunity for LGBTQ+ home ownership, real estate transitions, and new beginnings. Whether you’re a first-time gay home buyer, a same-sex couple selling a home, or an LGBTQ+ family preparing to relocate, you deserve an experience grounded in respect, inclusion, and safety.
With the right preparation — and the right LGBTQ+ friendly real estate agent — your journey can be rewarding, affirming, and filled with new possibilities for the year ahead.
To find an LGBTQ+ real estate agent who understands your needs, visit GayRealEstate.com, the trusted leader in LGBTQ+ real estate services, resources, and representation for over three decades.
Scott Helms is president and owner of Gayrealestate.com.
Autos
Revving up the holidays with auto-themed gifts
Lamps, mugs, headphones, and more for everyone on your list
Here’s how to shift your holidays into high gear.
Bentley Bottle Stopper

Pop your cork—in a good way—with a Bentley bottle stopper ($106), made of zinc alloy with chrome plating and rubber rings. The classy design is inspired by the automaker’s iconic “Flying B” mascot from 1930.
Subaru Motorsports Counter Stool

Belly up to the bar with the Subaru Motorsports Counter Stool ($175). The 30-inch-tall metal chair—with padded vinyl cover and automaker logo—is lightweight and swivels 360 degrees.
BMW Luxe Luggage

You won’t have trouble spotting this chic khaki-green BMW M Boardcase ($307) at airport baggage carousels. The high-performance “M” logo is etched on the durable polycarbonate casing, as well as on the main compartment zipper and all four of the sturdy double wheels. Comes with recycled lining, along with laundry and shoe bags.
Ford Yoga Gym Bag

The Ford Yoga Gym Bag ($15) has a wide handle and button strap to securely carry a yoga mat, as well as convenient pockets to stow water bottles and shoes. Made of black polyester, with reflective silver Ford logo. (Yoga mat not included.)
Kia Mini Lamp with Speaker/Sound

It doesn’t get much more Zen than a Kia Mini Lamp with Speaker and Sound Machine ($50). Made of bamboo, sturdy plastic and a fabric grill, the tiny wireless lamp has LED lighting with three settings. Pair with your phone to choose from eight soothing sounds: brook noise, bird chirp, forest bird, white bird, ocean wave, rainy day, wind and fireside.
Lexus Green Pro Set

Practice makes perfect with the Lexus Green Pro Set ($257), a putting mat with “train-track markings” to help improve any golfer’s alignment. Lexus logo on the wood frame with automatic ball return.
Lamborghini Wireless Headphones

Turn on, tune in, drop out—well, at least at the end of a hectic day—with these Lamborghini Wireless MW75 Headphones by Master & Dynamic ($901). Batteries last up to 32 hours or up to 28 hours in active noise-canceling mode.
BMW Quatro Slim Travel Tumbler

The BMW Quatro Slim Travel Tumbler ($23) lives up to its name: sleek, smooth and scratch-resistant. Comes with leak-proof lid and non-spill design.
Ford Vintage Mustang Ceramic Mug

Giddy-up each morning with the Ford Vintage Mustang Ceramic Mug ($29). With cool blue stripes, the 14-ounce mug features a silver handle and iconic pony emblem.
My First Lamborghini by Clementoni

Proving it’s never too early to drive an exotic car, My First Lamborghini by Clementoni ($62) is for children ages two- to four-years old. Kids can activate the remote-control car by pressing the button on the roof or by using the remote. This Lambo certainly is less expensive than an entry-level Huracan, which starts at $250,000.
Rolls-Royce Cameo

For adults looking for their own pint-sized luxury ride, there’s the Rolls-Royce Cameo ($5,500). Touted as a piece of art rather than a toy, this miniature collectible is made from the same solid oak and polished aluminum used in a real Rolls. As with those cars, this one even has self-leveling wheel-center caps (which operate independently of the hubcaps so that the RR logo is always in the upright position).
Maserati Notebook

For those of us who still love the art of writing, the Maserati MC20 Sketch Note ($11) is an elegant notebook with 48 sheets of high-quality paper. The front and back covers feature stylish sketches of the interior of a Maserati MC20 supercar and the Maserati logo. Comes with saddle-stitched binding using black thread.
Dodge Demon Dog Collar

If your pooch is more Fluffy-kins and less the guard dog you sometimes need it to be, then there’s the Dodge Demon Seatbelt Buckle Dog Collar ($30). Made of steel and high-density polyester with a tiny seatbelt-buckle clasp, the collar is emblazoned with devilish Dodge Demon logos.
Real Estate
In real estate, it’s déjà vu all over again
1970s and ‘80s volatility led to creative financing options
In the 1970s and 1980s, mortgage interest rates climbed into the double digits and peaked above 18%. With rates like that, you needed more than a steady job and a down payment to buy a home — you needed creative financing ideas.
Today’s market challenges may look different, but the response has been surprisingly familiar: unusual financing methods are making a comeback, along with some new ones that didn’t exist decades ago. Here is a brief overview of the most popular tools from that era.
Assumable Mortgages were available with FHA, VA, and USDA loans and, until 1982, even Conventional mortgages. They allowed a buyer to take over the seller’s existing mortgage, including its interest rate, rather than getting a brand-new loan, while compensating the seller for the difference between the assumed loan balance and the contract price.
Often, a seller played a substantial role in a purchase. With Seller Financing (Owner Carry) the seller became the bank, letting the buyer make payments directly to them instead of to a traditional lender.
One variation on Seller Financing was the Land Contract. The seller was still the lender, but the buyer made loan payments to the seller, who then paid his own mortgage and pocketed the difference. The buyer would receive equitable title (the right to use and occupy the property), while the seller kept the title or deed until the contract was paid off or the property sold.
With Wraparound Mortgages, the seller created a new, larger loan for the buyer that “wrapped” around the existing mortgage at an agreed-upon rate. The buyer would then pay the seller, who would continue making mortgage payments on the existing balance, collecting payments and pocketing the spread. Whether title conveyed to the buyer or remained with the seller was negotiated between the parties.
Unlike an assumption, when buying a home Subject To an existing mortgage, the buyer took title to the property and agreed to pay the seller’s mortgage directly to the lender plus any equity to the seller; the mortgage stayed in the seller’s name. Now, most mortgages have a Due on Sale clause that prohibits this kind of transaction without the expressed consent of the lender.
Rent-to-Own was also a popular way to get into a home. While a potential buyer rented a property, the seller would offer an option to purchase for a set amount to be exercised at a later date (lease option) or allow a portion of the rent collected to be considered as a downpayment once accrued (lease purchase).
Graduated Payment Mortgage (GPM) loans were authorized by the banking industry in the mid-1970s and Adjustable Rate Mortgages (ARM) surfaced in the early 1980s. Both featured low initial payments that gradually increased over time.
With the GPM, although lower than market to start, the interest rate was fixed and payment increases were scheduled. A buyer could rely on the payment amount and save accordingly.
ARMs, on the other hand, had interest rates that could change based on the market index, with less predictability and a higher risk of rate shocks, as we saw during the Great Recession from 2007-2009.
While mortgage rates today aren’t anywhere near the extremes of the 1980s, buyers still face a tough environment: higher prices, limited inventory, and stricter lending standards. That combination has pushed people to explore tried and true alternatives and add new ones.
Assumable mortgages and ARMs are on the table again and seller financing is still worth exploring. Just last week, I overheard a colleague asking about a land contract.
Lenders are beginning to use Alternative Credit Evaluation indicators, like rental payment history or bank cash-flow analysis, to assess borrower strength when making mortgage loan decisions.
There are Shared Equity Programs, where companies or nonprofits contribute part of a down payment in exchange for a share of the home’s future appreciation. With Crowdfunding Platforms, investors pool money online to finance real estate purchases or developments.
Another unconventional idea being debated today is the 50-year mortgage, designed to help buyers manage high home prices. Such a mortgage would have a 50-year repayment term, rather than the standard 30 years, lowering monthly payments by stretching them over a longer period.
Supporters argue that a 50-year mortgage could make monthly payments significantly more affordable for first-time buyers who feel priced out of the market. Critics, however, warn that while the monthly payment may be lower, the lifetime interest cost would be much higher.
What ties the past and present together is necessity. As long as affordability remains strained, creative financing – old and new – will continue to shape the way real estate gets bought and sold. As with everything real estate, my question will always be, “What’s next?”
Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.
