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Help for Older Homeowners in Foreclosure
Resources Offer Advice and Support
Common wisdom says that most older adults have paid off their homes and can expect to use their equity to retire. Unfortunately, in these hard economic times, that is not always the case.
Americans age 50 and older represent nearly 30 percent of all delinquencies and foreclosures, according to an AARP analysis. More than 684,000 were delinquent on their mortgages or in foreclosure and, among those, nearly 50,000 had lost their homes during the six months ending in December, 2007.
These folks, in general, are not spending recklessly. Many take out loans against their homes to help their children, repair their property, pay off medical bills or to keep up with rising costs while living on a fixed income. A serious illness or other circumstance beyond their control can cause older homeowners to fall behind on monthly mortgage payments, putting them in danger of foreclosure.
Ohio had the 10th worst rate of homes in foreclosure nationally in January 2009 - one in every 452 homes, according to RealtyTrac. To help stem this tide, Ohio government and private sector entities joined to produce Save the Dream, a program that provides information and highlights programs you can use to keep your home, including available resources and links to local housing counselors.
Resources at Save the Dream recommend that any senior homeowner having problems paying his mortgage:
The Office of Consumer Affairs (OCA) at the Ohio Department of Commerce encourages borrowers to call their lenders as soon as possible to explain any circumstances that may cause them to miss a mortgage payment. Many lenders understand that individuals and families can face major life events that can affect their ability to pay the mortgage. Things to ask about are options to renegotiate the loan or establish a payment plan. The earlier the lender is notified, the more options are likely to be available.
Two OCA publications - Foreclosure - Don't Let It Happen To You and Foreclosure Prevention: 'Work Out' Resolutions - are available to help Ohioans who are facing the possibility of home foreclosure.
Free counseling is available for homeowners facing foreclosure or wishing to avoid it altogether. Call 1-800-569-4287 or visit www.hud.gov to get help from a HUD-approved counseling agency in your area.