AARP Study Shows Seniors Adversely Affected by Foreclosure Crisis

Since the collapse of the housing market, 1.5 million American seniors have lost their homes to foreclosure, according to a new study by the AARP.

After analyzing data over a period of five years, the AARP found that the risk of becoming seriously delinquent on mortgage loans has grown rapidly for homeowner over 50, indicating that seniors are not as financially secure as once thought.

“Despite the perception that older Americans are more housing secure than younger people, millions of Americans are carrying more mortgage debt than ever before, and more than three million are at risk of losing their homes,” the report found.

The percentage of seniors facing foreclosure or who are at least 90 days behind on mortgage payments increased 6 percent in December over 1.9 percent in December. More alarming is rise in foreclosure rates for those over 75, which had an eightfold increase since 2007.

The data shows the reasons for the high number of foreclosures are not the cause of high interest or subprime loans. Instead, increasing medical costs, cuts to pension plans, falling home prices and dwindling stock portfolios are causing the elder foreclosure crisis.

Foreclosures for elderly and younger homeowners can be stopped, but it takes the diligence and tenaciousness of a foreclosure attorney.

When a homeowner decides to challenge a default notice, their foreclosure lawyer will be the go-between and deal with the lender so their clients don’t have to. Not only will this eliminate a great deal of frustration, it will also be more effective in getting the banks to agree to a loan modification or a short sale, whichever is the best option.

After a person receives a default notice, taking quick action by retaining a foreclosure attorney will make it more likely that a homeowner can avoid foreclosure.