Older People Increasingly at Risk of Losing Homes to Foreclosure
Posted on October 23rd, 2015
It used to be the case that older Americans were the most stable demographic in terms of finances. However, the last six years or so have made things more difficult for people over 50, and Arizona is no exception with its large numbers of retirees. AARP recently performed a study and found that the risk of serious delinquency on mortgages is growing fastest for Americans over 50.
Even more alarming, the foreclosure rate for people older than 75 has seen a big increase since 2007. Wright Law Offices has helped many people over 75 save their homes with Chapter 13 bankruptcy.
What accounts for this dramatic shift? As with many issues recently, the poor economy is chief among them. Many retirees have suffered through cuts to their pensions and have had to pay more in medical costs. Along with this, senior citizens’ savings have decreased, some to the point of nothing.
While some seniors have been able to fend off foreclosure, others have not been so lucky. And those who have tried to sell have at times found the going rough too. For example, someone who has lived in the same house for decades might not realize it is outdated or in need of sprucing up.
What many of these seniors may not realize is that filing for bankruptcy might alleviate some of these issues and let them stay in their house. Chapter 13 bankruptcy often allows people to maintain their homes while stopping foreclosure proceedings. People can restructure any arrearages that they have on their home and pay it back over a reasonable time period.
There are other advantages to Chapter 13 that a good Chapter 13 bankruptcy attorney can discuss with you. For instance, you may also be able to restructure existing auto loans and tax debts.
Source: The New York Times, “Facing Foreclosure After 50,” Robbie Brown, July 19th, 2012