Recent Report Finds Older Americans Facing Increased Risk Of Foreclosure

January 31, 2013

Recent report finds older Americans facing increased risk of foreclosure

A new report by the AARP shows that older Americans are facing increased risks of foreclosure. The report, titled Nightmare on Main Street: Older Americans and the Mortgage Market Crisis, was the first of its kind to focus on how the recent difficulties of the housing market is impacting people over the age of 50.

The report found that over 600,000 loans for people in this age group were in the process of foreclosure as of December 2011. In addition, over 1.5 million seniors lost their homes between 2007 and 2011 due to the mortgage crisis.

The findings discussed in this report are concerning, and leave experts wondering how seniors can protect their homes during these tough economic times.

Details of AARP's study: foreclosures for seniors soar

According to the study, the average age and economic standing of people impacted by foreclosures continues to rise. This increase is due to older Americans losing their homes because of falling property values and rising medical costs, Debra Whitman, AARP's executive vice president for policy told the New York Times.

Foreclosures can lead to unique risks for seniors.

As noted by the researchers, seniors often depend on home equity for financial security as they age. This equity can be used to help pay for medical needs or assisted living care as seniors age.

Bankruptcy and real estate: filing may help you keep your home

In order to help avoid foreclosure, it helps to know the basics of how this legal process works. A foreclosure can occur whenever a borrower falls behind on mortgage payments. Some lenders are willing to negotiate new terms to the mortgage and work with the home owners to help them keep their homes, others are not.

If a lender is not willing to negotiate and a homeowner faces foreclosure, it is important to know that there are options available to help avoid foreclosure. One option is bankruptcy.

Once a bankruptcy petition is filed, the court issues an automatic stay. This order requires creditors, like a mortgage lender, to stop collection attempts. As a result, a lender attempting to foreclose on a home will likely be required to postpone the process.

It is important to note that there are exceptions to this rule. In some cases, the lender may request that the court allow the foreclosure to continue. The court will then decide whether or not to grant this request.

Determining if the benefits of bankruptcy outweigh the risks can be difficult. As a result, it is important to seek the counsel of an experienced bankruptcy attorney to discuss your unique situation and better ensure your legal rights are protected.

Article provided by Law Offices of Farnsworth Mortensen, PLLC
Visit us at http://www.azbk.com/