Senior Citizens Worst Hit By Foreclosures in America

Posted on September 22, 2008
Filed Under Repo Homes | 1 Comment

It is the senior citizens that have been worst hit by the foreclosure crisis in America. About 28% of those boiling in the foreclosure cauldron are aged above 50. A recent study by AARP has questioned the validity of the hitherto popular surmise that the seniors have escaped the crisis because of they had built up sufficient equity on their houses.

The research done by AARP show that 684,000 persons aged 50 are in foreclosure during the last six months of 2007. Those who were above 50 comprised of 28% of all those who were in the foreclosure soup. Of these 684,000 senior borrowers, 50,000 were in foreclosures and lost their houses.

At the close of 2007 the rate among senior citizens of America who were in foreclosure was 0.24%. This was half of those who were aged less than 50 and have less equity than their elders.

Susan Reinhard of Public Policy Institute said that the seniors of America are dependent on their houses both as a shelter and an asset when retirement knocks. She said, “Losing a home jeopardizes long-term financial security with limited time to recover.”

The report also highlights the effects of the sub-prime mortgage crisis on those who were aged 50 and above. This group was 17 times more likely to be caught by foreclosure than those with prime mortgages. The states with high repo home rates among the seniors are California, Nevada, Colorado and Michigan.

Older Americans had made use of the equity on their houses for making repairs to their property and financing the higher education of their children. But seniors with fixed income are facing problems making mortgage payments. The sluggish economy with inflation is making the going even tougher for those with advancing age. Fall in the real estate market has affected all age groups.

Daniel Alpert of Westwood Capital that both young and old who had siphoned off the equity on their houses are now rocking on the same boat of foreclosure Many seniors like the juniors contracted teaser loans thanks to the aggressive peddling of the same by agents. The mortgage forms were also difficult to comprehend. The call of the hour is simplified mortgages. So it was a question of sales talk and trust that were misused for disastrous consequences for all – the lender, the borrower and the community together with the hapless individual whether young or old.

Search Repo Homes

• Arizona Repo Homes
• California Repo Homes
• Florida Repo Homes
• Georgia Repo Homes
• Michigan Repo Homes
• Ohio Repo Homes
• Texas Repo Homes
• Repo Homes In Other States

Popularity: 12% [?]

Related Tags

• what is the reason for foeclosure among seniors
• reasons for seniors in foreclosure
• foreclosure and senior citizens
• repossess home rights for senior citizens
• seniors foreclosure

• hispanic senior citizen in foreclosure

• senior citizens and foreclosure
• lists of seniors on foreclosure
• seniors and foreclosures
• seo forum

Comments