Seniors are quickly becoming one of the hardest hit groups from the new rise in foreclosures, leaving many with a bleak outlook for the future…
Many seniors may have been able to hold out longer in the face of the recent foreclosure crisis thanks to savings, but recent data shows they are also now among the hardest hit from the new surge in foreclosure filings in many parts of the country.
There has been a big surge in foreclosure filings and new delinquencies involving the over 50 crowd since last year. Many were turned down for loan modifications and short sales and are quickly running out of options, some with nowhere to go if they lose their homes.
Foreclosure can certainly be tougher on seniors because they don’t anticipate their incomes to rise again and poor investment returns or big losses in recent years had them barely able to afford the basics instead of living the dream retirements they had planned on. Plus, without significant savings it is a catch 22 situation. How can they afford to keep up mortgage payments in addition to rising utility and insurance costs or afford escalating rents if they decide to let their homes go to foreclosure and move on?
The good news is that thanks to the giant mortgage settlement some lenders may be more willing to assist senior borrowers with loan modifications and short sales, especially those who have suffered new hardships such as the loss of a partner or soaring medical bills. However, seeking out professional help to negotiate the best terms and hopefully a significant relocation check for those choosing short sales is critical, though time is running out, with only weeks left to the end of 2012.
Some seniors who do still have sizable savings may actually benefit from moving investments into real estate where they can benefit from the best returns and passive income levels. However, most seniors don’t want to be a burden on the rest of the family and won’t reach out for help from them.
When was the last time you checked in on mom or dad or grandma to see how they were doing?
