Americans over the age of 50 are having difficulty paying their mortgages, leading to millions of foreclosures.
According to the AARP, between 2007 and 2011, 1.5 million Americans aged 50 and older faced foreclosures and lost their homes. Many older homeowners have attempted to refinance their mortgages to pay down other debts, only to see the original balances swell two-fold.
For example, a 70-year-old California man refinanced his mortgage to invest in other finances, but in a short amount of time, his $330,000 mortgage more than doubled to $680,000. Instead of offering the man a modified mortgage, the bank foreclosed and he lost the home he had lived in for more than 20 years.
Older homeowners can also face problems such as losing jobs or becoming ill. In some cases, banks may refuse to modify the terms of mortgages, and older homeowners must turn to their children, charities or retirement homes for relief.
What Options Are Available For Homeowners Facing Foreclosure?
There are several options, and because each individual situation is different, contacting a bankruptcy attorney can help struggling homeowners find the best path forward.
Filing for Chapter 13 bankruptcy can place an “automatic stay” on mortgages, stopping collection activity against a homeowner. Automatic stays can stop foreclosure proceedings the very moment an individual files for Chapter 13 bankruptcy. There are other options to avoid foreclosure depending on the situation.
The Sader Law Firm – Kansas City Bankruptcy Attorneys