Foreclosures Create Problems for Older New Yorkers

January 09, 2013

Foreclosures create problems for older New Yorkers

Although many feel that the housing market has taken a turn for the better, the number of foreclosures is actually starting to climb again. With this issue most drastically affecting older generations, it is proving to be a reason for concern moving into the future, even in Monroe.

Home ownership no longer guarantees financial security later in life, and many older Americans are learning this lesson the hard way. One 57-year-old woman featured in a recent Huffington Post article about foreclosures on older Americans is struggling to make ends meet while working two jobs. She is one of many having difficulty making her monthly mortgage payments on time.

AARP reports that about 600,000 people 50 years and older currently find themselves faced with foreclosure. Out of all the loans held by older Americans, the number of delinquent mortgages has increased by more than 450 percent in the last five years. The rate is increasing at an incredibly fast pace.

On a fixed income and living in New York

Many Monroe-area residents are living on a fixed income and have depleted their retirement savings. They struggle when trying to get back into the workforce because many do not have the qualifications that the younger generation does. In addition, older minorities are the far more susceptible to foreclosures, with risks that are double that of white borrowers around the same age.

The unfortunate reality is that many of these older homeowners haven't missed a payment. They have worked hard their entire lives and now find themselves in a situation over which they have very little control. AARP officials predict that the situation will get much worse before it gets better, and creative solutions will be crucial in helping older generations keep their homes.

Bankruptcy as an option

One possible option that many may not even realize they have is Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy allows people to negotiate their debt and sets up a payment plan based on their income and what they can currently afford. The option typically helps avoid foreclosure.

Although bankruptcy has historically carried a negative stigma in America, economic realities have eased that rigid view. The recession has been very difficult on families, and society is starting to understand that bankruptcy is not a sign of weakness, but a sign of courageous people asking for the help they need and fighting for fresh start.

Anyone considering bankruptcy should discuss the situation with an experienced bankruptcy lawyer. These attorneys know the ins and outs of bankruptcy law and are able to fully assess the situation and give the best advice possible. Each attorney is equipped with knowledge about the different types of bankruptcy and how the bankruptcy will affect a person's future. Talking with an attorney is the best way for a person to get back on track.

Article provided by Chamberlain D'Amanda
Visit us at http://www.cdogbankruptcylaw.com/