Foreclosure Defense, Foreclosures, Housing Market Trends

Mortgage Debt Remains a Problem for Homeowners 55 and Older

Homeowners throughout the country have struggled with staying afloat and remaining in their homes during the COVID-19 pandemic. With no immediate end in sight to the pandemic, it appears as if that problem will continue, especially those in the 55 and older age group.

The U.S. Census Bureau reviewed household statistics through its biweekly Household Pulse Survey to see how homeowners are faring with remaining current on their mortgage obligations. Their most recent study covered the period of September 1 through September 13, 2021. According to the Census Bureau, 1.7 million homeowners ages 55 or older were reportedly behind on their mortgage payments. Of these 1.7 million homeowners, 277,000 of them said that the possibility of facing foreclosure was likely or very likely for them.

The Census reported that 6.4 million homeowners in all age groups were behind on their mortgage payments. Within this group, 1.1 million or 17 percent were between the ages of 55 and 64.

The situation with individuals in this age group is even more problematic since they do not qualify for Social Security or retirement benefits at this point. If they lose their job or are put in a tough financial situation, they lack the safety net to help them stay afloat.

Individuals in this age category are not just struggling with their mortgage payments. Older consumers are also struggling with staying current on their rent payments and other living expenses. A reported 188,700 adults who were 55 and older are behind on their rent payments and face the possibility of being evicted from their homes.

Many were hopeful that the U.S. Supreme Court would allow the eviction moratorium to be extended once more to allow residents to remain in their homes. However, this was struck down recently after the original moratorium declared by the Centers for Disease Control and Prevention (CDC) was called into question after being originally issued in September 2020 and continually extended well into 2021.

Now that the moratorium has expired, homeowners and tenants who were struggling to catch up on their past due mortgage or rent payments may soon find themselves out of a home. According to the recent census data, many older homeowners are struggling to make mortgage payments, not to mention pay for food or other living expenses. Without additional relief programs, they may be left with no option but to proceed towards foreclosure.

For homeowners who are struggling with their mortgage payments, other help may still be available. Many lenders are still willing to work with borrowers on temporary forbearance programs. Congress has recently set an official deadline for forbearance applications for loans owned by either the Federal Home Loan Mortgage Corporation, also known as Freddie Mac, or the Federal National Mortgage Association, also known as Fannie Mae. These two lenders make up around 80 percent of all mortgages. Additionally, the Federal Housing Administration (FHA) had issued a deadline of September 30th for forbearance applications.

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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

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