Many older Americans face financial threats such as falling for money scams, running out of savings and not having adequate retirement plans in place. Since the housing market collapse and the worst recession American has seen since the 1930’s, millions of retirees are now struggling to make their mortgage payments.
Over the last twenty years, retirements have dwindled for the baby boom generation, as employers get rid of traditional pensions. American seniors are dealing with devastating financial consequences after using their retirement funds to cover housing costs. As a result, many must return to work again or seek help from charities, government programs or even their children.
According to the Consumer Financial Protection Bureau’s Office for Older Americans, 30% of homeowners, ages 65 and older paid a mortgage in 2013, approximately 6.5 million seniors. The median mortgage amount for seniors has also doubled from $43,400 to $88,000, since 2001. A significant amount of older Americans were left with mortgages exceeding their home’s value, after the housing market crisis. Hundreds of thousands of these seniors have even lost their homes to foreclosure. AARP found in a 2012 study that that between 2007 and 2011, 1.5 million Americans over 50 lost their homes.
One struggling retiree cannot manage the financial weight left behind by her late husband. “I’ll live on the streets, I guess,” she says, considering homelessness at age 74.
Reverse mortgages is another problem retirement age Americans have run into. These loans against the equity of their property, supplied cash to the homeowners, but once they passed on or sold the house, the money was due. Many seniors faced problems when their spouse signed the reverse mortgage, to qualify for a larger loan, only to pass on shortly thereafter. Often lenders then demanded full repayment, with foreclosure as the unfortunate alternative.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Sources:
http://www.foxnews.com/us/2015/06/02/more-older-americans-are-buried-by-housing-debt/
http://www.usatoday.com/story/money/2015/06/02/older-americans-housing-debt-retirement/28358093/
