One in 30 Homeowners Over Age 75 in Foreclosure
AARP says delinquency growing among the over 50 crowd
By Kevin Spak, Newser User
Posted Jul 19, 2012 9:44 AM CDT
A sign offering help in foreclosure cases stands by a street in Pembroke Pines, Fla, May 2, 2012.   (AP Photo/J Pat Carter)

(Newser) – Older Americans are increasingly feeling the hovering specter of foreclosure, after years of not suffering as acutely from the housing crisis, according to a new AARP report. While younger Americans still have a higher rate of serious delinquency, older Americans are now falling behind at a much faster rate, the AP explains. In the past five years, the proportion of loans held by people over age 50 that are seriously delinquent has jumped more than 450%.

More than 1.5 million older Americans have already lost their homes, about 600,000 are in foreclosure, and roughly 3.5 million—about 16% of all older homeowners—are underwater on their mortgage. The very old are being hit particularly hard: About one in 30 homeowners over the age of 75 are in foreclosure. What's more, many of the 50-plus crowd have no way to recover, having already spent their retirement savings. "The Great Recession has been brutal for many older Americans," says the AARP's policy chief. "This shows that homeownership doesn't guarantee financial security later in life."

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Showing 3 of 7 comments
shaboom
Jul 19, 2012 6:37 PM CDT
Capitalism should be renamed "Contemptible-ism"
chillette
Jul 19, 2012 11:09 AM CDT
In New Jersey elderly people are losing their homes because they can't pay their property taxes. Many elderly people have paid off their mortgages but their tax bills average out to an amount higher than their mortgage payments were.After utilities, food, medicine, they don't have enough left monthly to pay their property taxes. In New Jersey it is a combination of bad policies from both sides. A racist history has seen the development of a huge number of towns with their own mini governments that must be supported by taxes. New Jersey has more municipalities than California. The problem is that these racist little hovels don't want to consolidate. A corrupt and wasteful state government mentality where billions are routinely stolen and then covered up by taxing people. Christie was actually elected by people who ignored the fact that as attorney general he sat back and let some of the worst scandals in New Jersey history occur and do nothing. The School Construction Fund and Xanadu are two examples where billions in state funds were stolen and no one ever answered for either. Now Christie is funneling more money to Xanadu and even to help casinos in Atlantic City. Then there is the raiding of a once healthy pension fund that was started by Christine Whitman and continued by both parties. They not only took money and funneled it to wall street but they also failed to make matched contributions for years. They have now frozen the pension payouts to retirees which means there is no COLA and makes it more difficult for them to pay property taxes. Add to that many people in NJ are tied to wall street and have seen their 401k plans decimated. Then there is the fact that New Jersey's state controlled social programs are unevenly applied and overly generous to just certain segments of the population. Citizens who never work and illegal immigrants get an abundance of services. People move to new jersey from other states or illegally come here just for the tax payer funded benefits. The elderly who worked, middle aged unemployed,the truly working poor, couples, single people, or those with only one child can just forget it. They get almost nothing. They pay the taxes but when hard times hit they qualify for nothing. One of the problems being that social services in New jersey are notoriously corrupt. Part of the problem is that the people keep electing these blatant crooks.
bubbahotep
Jul 19, 2012 11:05 AM CDT
This is only the beginning.......