Daily News from New York, New York • 59

Sunday. October 12, 1986 Business DAILY NEWS IMmh SDMil esm sfiay DnaDoim rose to 0.25 of the 9.5 million mortgages surveyed. The alarming trend relates to the way buyers approached purchasing a house. In the late 1970s and early '80s, consumers were urged to buy the biggest and most expensive house they could afford. The result: Owners were paying 35 or more of their monthly income on housing.

In addition, more and more buyers used two incomes to qualify for mortgages. By BURT HUBBARD Scripps Howard Escalating home foreclosures point to a need for Americans to rethink their approach to buying a home. Despite lower interest rates and a mini-boom in housing, homeowners are walking away from their houses in high numbers. Earlier this month, the Mortgage Bankers Association of America reported the percentage of homeowners who went into foreclosure during the second quarter Today, housing officials are finding that the major reason for increasing foreclosures is that the family loses one of those paychecks either through layoffs or the birth of a child. As a result, buyers need to be more realistic about the type of home they can afford.

They must look years ahead and plan for a worst-case scenario. Type of loan is equally important. Several years ago, mortgages in which monthly payments would increase each year such as adjust got in over his head on the mortgage, he usually could rely on double-digit increases in the home's value to bail him out. No more. In most areas of the country, prices are rising very little or even stagnating.

Even on the East Coast, where homeowners are enjoying rapid property appreciation, it won't last forever. As painful as it may be, many buyers must lower their expectations. A smaller house is better than losing a home to the bank. able-rate loans and gradu-ated-payment loans were all the rage. Buyers used the loans with the expectation that their salaries would rise to compensate for higher mortgage payments.

But inflation dropped dramatically, and 10 pay hikes gave way to 2 annual raises. When homeowners found they couldnt afford the higher payments, they simply walked away from the loans. However, even if a buyer bought too much house or ADAMS CO ADAMS FROM PAGE ONE Sure, I want a mutual fund. But why can't it be as convenient as my bank?" bers of the cast from "Big River." -Times Square just ain't like it used to be. MERGER RUMORS FLY: Recent lunch-time tete-a-tetes between C.

Edward Acker and Robert L. Crandall have rekindled rumors of a merger between Acker's Pan Am and Cran-dall's American Airlines (AMR Company officials deny the lunches, but insiders say the two airline chiefs have been putting their heads together for weeks in New York. Airline sources say a combination makes sense, but don't count on anything soon. E.F. Hutton analyst Hans Plickert says Pan Am's transatlantic routes and Kennedy gates make it a perfect fit for American.

American already runs big chunks of Pan Am's frequent-flyer program. Joint marketing agreements are in place and in effect. Most critical of all, American by early 1987 will take care of Pan Am's reservations through its ultra-expensive SABRE system. That contract gives American right of first refusal on any bid made for Pan Am. Crandall has promised to make American grow from the inside out, if employes would agree to wage and work rule concessions, reports John Pincavage at Paine Webber, making a takeover in the near-term unlikely.

Unless, of course, Pan Am hits dire financial straits. Then all bets are off. Gtibank just made investing in mutual funds as easy and convenient as banking with us. And that puts control of your investments ngm wnere you warn n. in your nanus.

LANDMARK FUND FUND DESCRIPTION Tax-Free Money Market Funds Tnpletaxfreemoneymarket fund for New York residents Earnings New York Tax Free Reserves free from federal. New York State and New York personal income taxes A constant $1.00 share price Tax-free money market fund. Tax-Free Reserves Earnings free from federal taxes A constant $1 00 share price Stock And Bond Funds Triple tax -free municipal bond fund for New York residents Income New York Tax Free Income Fund exempt from federal. New York State and New York City personal income taxes. Current income from securities backed by trie full faith and credit of Government income Fund 'gaimmenl GinnteMaes Current income and opportunities Growth and Income Fund for capiTd, grn Capital Growth Fund Long-term growth of capital Choose from a whole family of mutual funds.

The Landmark Funds, sponsored and distributed by The Landmark Funds Broker-Dealer Services, Inc They're among the many investment services available through The Citibank Investment Portfolio!" Its a more convenient, more flexible way to manage your investment At Citibank you can buy or sell shares by phone. Switch from one fund to another. Or switch to your Citibank checking or money market account So you can turn your fund shares into cash overnight Then pick up your money the next morning at any Citicard Banking Center At Citibank, there are no commissions. No sales fees. No redemption fees.

Your money works for you. Only you Of course, a mutual fund is not a bank deposit It does involve some risk Vbu should read the prospectus carefully before you invest Landmark Funds through Citibank. Mutual funds made easy and convenient Now through The Citibank Investment Portfolio. Stop in to any Citibank branch, and we'll help you get a prospectus and additional information. Or call us toll free 1-800-248-4472, ext.

9990. C1TIBANB AClTiCOVPCOMWN AD MAD: Were Apple Inc. chief John Sculley and BBDO hon-cho Phil Dusen-berry embarrassed at the preview of Apple's new ad campaign? Movie critics Gene Siskel and Roger Ebert, paid by the computer maker to review the $68 million ad campaign, opined: "Most of these commercials are tremendously effective, but we're not sure that Apple's name is men Shares oi the funds are sold and distributed by The Landmark Funds Broker -Dealer Serv.ces. Inc wh.ch is not a Citicorp company Gtioank makes The Landmark funds available soie'y in capacity as shareholder servicing agent ana does not act as distributor fof the funds Any information in this ad about the funds is provided solely to identity the funds for wnh Citibank acts as shareholder senioig agent Citibank aoes no! endorse or sponsor tne funns The funds are not obligations of Citibank and are not Dy the FDtC Landmark is a service mark of The Landman rundb Broe' Deaie Services, inc NA, 1586 APPLE CORE: John Sculley. srw5 umimikimm tioned enough." Well, drop my jaws! Sculley, reports Daily News Business writer Richard Sherwin, turned a mild shade of Macintosh red.

But not Dusen-berry. Sleek in silver suit, he maintained Mad Ave. elan throughout The Plaza event. Former PepsiCo prez Sculley was at his Apple-polished best in relaxed California cords and green blazer. One BBDO exec called it "somewhere between the normal jeans attire of the regular Apple employe and the three-piece suit that went with Pepsi." li if it a tii.