U.S.: 600,000 people who are 50 years or older are in foreclosure
Housing crisis hitting older Americans especially hard
The housing crisis - where a recessed economy finds many Americans
unable to get pace with their monthly mortgage payments, have hit those
50 years and older especially hard. More than 1.5 million older
Americans already have lost their homes and millions more remain at
'These are people who in many instances have never missed a payment in 20 years,' Rep. Elijah Cummings of Maryland says. 'You see grown men crying because of the potential loss of a home.'
About 3.5 million or 16 percent of older homeowners are currently "underwater," owing more than their homes are actually worth, the AARP says.
"The Great Recession has been brutal for many older Americans," Debra Whitman, AARP's policy chief says. "This shows that home ownership doesn't guarantee financial security later in life."
Over the past five years, the proportion of loans held by older Americans that are seriously delinquent leapt by more than 450 percent.
While homeowners who are younger than 50 have a higher rate of serious delinquency than their older counterparts, that rate is increasing at a faster pace for older Americans than for younger ones, according to AARP's analysis of more than 17 million mortgages.
While 8 in 10 own Americans older than 50 own homes, many live on fixed incomes, have little savings or have already burned through much of their retirement savings. Even worse, they have fewer working years left to build back what they may have lost.
Seniors who are forced to re-enter the workforce often find they can't command the same salary that they did in the past.
There are greater rates of foreclosure among Americans along socioeconomic and racial lines. Among older African-Americans, 3.5 percent were in foreclosure at the end of 2011, and the rate was 3.9 percent for Hispanics. Just 1.9 percent of white homeowners were in foreclosure.
Rep. Elijah Cummings of Maryland has his office hold regular foreclosure prevention workshops. Cummings said the federal government can do its part by promoting principal reduction and loan modification programs.
"These are people who in many instances have never missed a payment in 20 years," Cummings said. "You see grown men crying because of the potential loss of a home."
Homeowners who are 75 or older are in the worst shape when it comes to foreclosures, the report showed. In 2007, one out of every 300 homeowners 75 or older was in foreclosure. Five years later, about one in 30 face that same fate.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Foreclosures, older Americans, retirement, poverty
Rate This Article
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.