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More Homeowners Over 50 Are Defaulting on Their Mortgages

Written by Gary North on December 4, 2012

You might think that middle aged homeowners would live in paid-off homes. Not so. They kept buying up. They kept taking on more mortgage debt. Then they borrowed against their equity.

We now face a new situation. They are defaulting.

Homeowners more than 50 yearsold are falling into foreclosure faster than any other age group, particularly widows whose husbands held the mortgage, said the New York Times.

Foreclosures among homeowners over 50 increased by 23% over the past five years, resulting in 1.5 million foreclosures.

The main reason for the rise in foreclosures is due to women outliving their spouses and not being able to cop with ballooning, medical costs, mortgage and pension cuts. . . .

About 6% of loans held by persons over 50 were delinquent in 2011, up from 1% in 2007, according to a study by AARP.

One of the problems is older Americans are saving less and borrowing more, said executive vice president for policy Debra Whitman of AARP.

Click here to read the full story.

This is not going to get better. It is going to get worse. The number of widows will continue to rise. They will be strapped for income. They are not ready to re-enter the work force. The economy is bad. Unemployment is high. Wages are low.

If they bought large term life insurance policies on their husbands’ lives, they would have hope. They could collect $250,000 to $500,000 at the death of their husbands. The premiums are low. But they stick with the “whole life” policies their husbands bought years ago. No one warns them.

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11 thoughts on “More Homeowners Over 50 Are Defaulting on Their Mortgages

  1. This situation of course is playing into the hands of Wall Street and the too-big-to-fail banks as planned. Those monthly mortgage payments were never enough to keep the banks solvent; they need the value of all that real estate on their books. Hence the robo-signings, the foreclosures and seizures based on fraudulent paperwork, forgeries and phony notarization. Wells Fargo recently foreclosed on a terminally ill cancer patient's house even after a court ordered Wells Fargo to back off. We are in the age of vulture capitalism.

  2. danno wake up the chimp dick-tater is getting just what he wants the destruction of america

  3. The banks are not in the real estate business. The forclosures represent huge expenses and losses to lenders and now they should take the losses like everyone else. Banks made these loans because FHA, Fannei Mae and Freddie Mac guaranteed them. They were on the bandwagon making great money when everything was going up, but now the taxpayers will bail them out. This is how the government distorts the market and then claims to fix it. We are doomed.

  4. This started long before he was in office. Duh.

  5. You've obviously been asleep, Rip. The financial institutions bought back the underwater mortgages with billions of your tax dollars. The bad paper was dumped on John Q Public. And the bankers and Wall St. laughed all the way to…the bank.

  6. No problem paying my mortgage. It’s all the other things that have gone up. Personally I’m spending 10,000.00 more a year in Food, heating fuel, gas for car, medical premiums ,Etc…Life… I don’t eat out, buy things not needed.. I feel so bad for people my age, 50ish, that lose their homes, and jobs…

  7. A lot of these over 50 seniors borrowed against their equity to send their kids to college. then seniors lost their jobs, kids came home from college with no jobs, to live off them, now they will be forced to pay for their kids health insurance until they are 26, plus find an insurance plan that will cover them at their age

  8. How many people stay in their houses for 30 years?
    I would have loved to stay put, but I had to move for job situations several times over the years.
    And each time housing prices had risen, risen where I had to move to, but not from where I was moving from.
    So I was starting over again and again.
    I'm in no danger of losing my house at this time, but I make good money and live in a very modest home.
    But it's not hard to see honest hard-working people getting stuck in a situation where they lose their houses.

  9. things can’t be that bad ,that’s why they re elected Obama to continue doing what he has already done .the American people want more of this .can’t you all hardly wait until we are a third world s*** hole .remember ,the fun starts when the money runs out.

  10. That's exactly what Rip was saying. What's the difference between "but now the taxpayers will bail them out", and "The financial institutions bought back the underwater mortgages with billions of your tax dollars. The bad paper was dumped on John Q Public"? You should read more carefully before you jump all over someone.

  11. Funny, how the rich and people that are buying all this gold think that they,re going to be ok: what do they think their money or gold is going to be worth, when the dollar colapses?
    It's not a question of "if!" but when..
    This whole mess started, when people thought that it was smart to take GOD, and throw him under the bus.
    Old proverb: "blessed is the nation, whose GOD is the Lord.": guess what the opposite of "blessed" is?