7 Tips on Retirement Community Safeguards

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"When an Erickson resident dies or leaves a community, his or her entry deposit is returned (without interest). This has been a strong selling point for the company. Despite financial pressures, Erickson says it intends to honor all commitments to return entrance deposits."
As I wrote before -- the money is not returned until they resell it -- and they are giving new potential tenants contingency clauses which do not require permission from the sellor -- they tell you people will settle in 60 to 90 days from making an offer -- also the full entry fee is not returned, even if the unit is sold for more then paid in. Can anyone tell me where my $$ is being held --

Sandra Barron of NJ 9:52PM November 02, 2009

All this talk that entrance fees are returned is just publicity, they have to "remarket" the unit and then the person has 7 days after they move in to cancel. I have been trying to get my mother's entrance fee back for 5 months now. They were very slow in beginning to "remarket" it which is supposed to begin as soon as you give notice that someone is moving. We were told that all the neutral draps and blinds we put in would have to be removed -- which was not what we were told when we bought them. Then it was "you can sell them to the new owners." The new line is "they would no longer have a warrenty." Guess it is good way to sell more blinds.We gave 2 months notics and then they took another month to "redecorate" -- only then did the sales office actually show it to people. The price they listed it at was quite high (since they keep the money over the entry fee) and my impression was that they were pushing the new units to increase cash flow. Finally someone made an offer, the unit was removed from inventory before checking with us about accepting the contingency clause to sell their current home. Now the people recinded their offer due to Erickson's financial condition. I feel a lot of sales have been canceled. So now they sit with my loan and no maintenance revenue from the unit.

Sandra Barron of NJ 9:46PM November 02, 2009

We have been on a priority list for a Maryland Erickson Community for a couple of years now. After reading that funds in bankruptcy court will first be given to banks; then bondholders; and, lastly, the residents, I would be very cautious about handing over close to $400,000 to Erickson. What a disappointment!

Evie of MD 10:42AM November 02, 2009

Ken,
I live in an Erickson community in Maryland and it was the best choice I ever made. We got ourt of our house because it was begigning to be too much wor and our neighborhood was starting to change for the worse.
We are lucky because we have family nearby and we have them over each weekend for dinner. Obviosly, we are all older- more 70+ than 55+, but its great. You can do as much or little as you want.
It's kind of like a cruise ship if you've ever been on one. Everythign you could ever want is on campus. There are clubs, college classes, parties and there are even stores, banks, bars and restaurants on cmapus. I love it at Chalrlestown and couldn't be happier here.

Thomas of MD 10:38AM October 15, 2009

The key question is, not the financial strength of the non-profit retirement communities, although important, but rather the financial condition of the profit entities that create and control, albeit indirectly, the non-profit retirement communities.
The profit entities, such as Erickson and its related entities, are sustained by rental fees and loans from the residents of the non-profit retirement communities, but Erickson's profit entities never disclose their financial condition to the incoming residents. Until that is required by regulators, the security of loans by residents and use of their rental income by Erickson's profit entities will jeopardize the financial viability of the non-profit retirement communities.

George J. Fulkerson of MI 9:33PM October 14, 2009

I have had two widowed grandmothers who both lived extremely happily for many years in 2 different accredited CCRCs in PA. I visited every month and from what I saw, tThey both had many friends (some were friends previously and some were new-found friends by being neighbors). Both women were constantly busy with exercise, parties that they hosted in their apartments, and resident committees. They were both very different personalities, but they both led very full lives in their respective CCRCs. They both ended their lives differently in the CCRCs, but all the members of our family to this day have no sad stories of loneliness or regret that these women could have had if they had stayed isolated in their huge homes without easy access to friends or transportation.

Sue of MD 6:45PM October 13, 2009

I have always wanted--but have yet to see--an honest appraisal of the pros and cons of a 55+ or a retirement community from the people who actually live in them. How do people who live in them really feel about their choice? Most are far from family but do offer recreational options.

Ken of MA 11:51AM October 11, 2009