Study: 700,000 Delinquencies, Foreclosures Involve Older Homeowners

September 22nd, 2008 by

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According to a study conducted by the AARP Public Policy Institute, the likelihood of a foreclosure is higher for older homeowners. This certainly debunks the old myth that older borrowers are less vulnerable to the foreclosure crisis.

The said research involved data obtained from July to December last year. It revealed that about 684,000 Americans with the age of 50 years old and above were in some stage of foreclosure. This figure accounts for 28.1 percent of all delinquencies and foreclosures.

In addition to the older ages, the study also showed that Hispanics and African Americans were more at risk of losing their homes to foreclosure than Caucasians.

According to the group, there is a wrong perception by the public that the older homeowners are more financially secure. In reality, there is a significant number of older homeowners who are uncertain about their future. This is quite sac considering that these older people are depending on their homes to provide them shelter until their retirement days.

If these older homeowners lose their homes to foreclosure, it will literally jeopardize their future. Aside from this, it will be harder for them to recover from such losses considering the limited number of productive years they have left.

With the foreclosure crisis still causing negative impact nationwide, it is not surprising that the figures from this particular study will increase.

AARP Public Policy Institute is actually a non-profit membership organization that provides assistance to older Americans, usually 50 years old and above, in order for them to enjoy a level of independence that will be beneficial to them as well as to the community.

Using the data from the research, the organization hopes to address in the future the reasons why these older homeowners are unable to meet their mortgage obligations and eventually end up losing their homes to foreclosure.

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