Posted By: Lori Einhorn
According to a recent report by AARP, over 3 Million older Americans over the age of 50 are now at risk of losing their homes to foreclosure. Almost 2 Million elderly have already lost their homes since the housing crisis began, and another 3.5 Million are now underwater. The report also states that older Americans are “carrying more mortgage debt than ever before”.
CNN explains one of the reasons for this is “older homeowners were often convinced to refinance their mortgages for more than they owed”. They are also entagled with toxic subprime loans with attractive rates for the first few years. Of course, as the years have passed and the market has gotten worse, the problem has only been magnified, because now that they are underwater, they can’t get out of these troublesome loans.
Nationwide, home values have plunged 34% on average since the bubble burst in 2006, but the biggest drops happened in states that attract retirees like Florida, Nevada, California and Arizona.