The Average Age of People in Foreclosure
Posted by admin on Nov 19, 2008
Research data shows that the likelihood of a foreclosure seems to come with age. In a study conducted by AARP last year, out of 2.5 million people sampled, about 1 million of them are aged 50 or over, more than half of the over 50 age-group are delinquent on their mortgages, that is 634,000 and another 50,000 were in foreclosure and had lost their homes during the six-month course of the study. The study also revealed that older Americans have 100 percent more of a chance of being affected by negative equity, such as loan-to-value ratio, than younger Americans.
The researchers have found out that in this age group, people are buying homes they simply could not afford. This is not a result of a miscalculation or a reckless decision, but some little things that sometimes negatively effect people in their daily lives. These little things can mount up to something considerable at a later date affecting their budget and their mortgage. These little things may include a loan to pay for the kid’s education, or health bill.
When buying homes, these little homes are usually not considered in the long term budget. Homeowners are usually concerned with paying the mortgage and these little things are usually neglected until they are large enough to interfere with the mortgage. If it is neglected to long it can have an extremely negative effect on ones life.
The study recommended that people need more sound advice in deciding how and when to acquire a property. Americans need to be more intelligent when it comes to their budget and should start making informed decisions when it comes to a mortgage. In most cases, people are making self-defeating decisions usually due to listening to mortgage lenders and loan officers and thinking of them as counselors. This is especially true with the elderly.
Interesting facts. I was just having a discussion with someone about this last week. Great blog. I have definitely subscribed. Thanks!
Searched foreclosure in msn but for some reason found this page.great info
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lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan, it allows the mortgage loan to be reinstated and results in a payment the mortgagor can afford.
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does anyone know the answer to or a good resource to find out the average credit score of people in foreclosure or delinguent in mortgage?
By the way you said your reference reflects deliquent in mortgage which is different from being in foreclosure.
Yet I often see the two terms intertwined in the news.
Prudence and realistic budgeting are the best ways of avoiding foreclosure, but other things can happen such as loss of employment that can’t be helped, so it is imperative to save enough to see you through times of unemployment. These are things I had to learn the hard way as when I was younger I didn’t think things could ever get this bad.
Great! Thanks alot for the information as its extremely helpful for those in the industry. I’m currently looking to build a Foreclosure ‘bio’ and this will be extremely helpful.
I own a title abstract company and when the refinance boom hit, this was the first thing I thought about. There was even a woman in my town who said that she and her husband would buy a home live in it for a year and then sell it for profit and then they would move into a more expensive home because they had a bigger down payment from the pervious profit. Last I heard, they walked away from their last home because her husband lost his job and they could not afford the montly payment. They even tried to get the mortgage company to lower their payments. It was still not enough. People should not try to live beyond their paychecks!
Please, can you PM me and tell me few more thinks about this, I am really fan of your blog…
Hello I read an article about budgeting loan and have the same title,rage Age of People in Foreclosure | LIG Loan Modification Services Blog, but it was completely different and less interesting than your one .Personally, I agree with you more,because this article makes a little bit more sense for me.
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