Too Many Older Homeowners’ Mortgages Stay Stuck Under Water Even With Mortgage Relief, Says AARP
Source: AARP Press Center | 2009-05-21
May 21, 2009
Contact: AARP Media Relations, 202-434-2560, media@aarp.org
Washington - AARP Executive Vice President Nancy LeaMond applauded President Obama for signing the mortgage relief bill but warned that too many older homeowners still stand at risk of foreclosure. Following is her statement:
“The mortgage relief bill voted out of Congress and signed by President Obama offers some hope for some homeowners, but Congress has yet to give many older homeowners a sensible, affordable and sustainable way to workout their mortgage debt that also takes their other household debt into account. Nine in ten older Americans say they want to stay in their homes for as long as possible, but AARP research shows that even at the end of 2007, a quarter of all foreclosures or delinquencies were on mortgages held by Americans age 50+.
“More people will be saved from sliding into foreclosure because of the improvements in home mortgage relief in the new law. But while homeowners who can benefit from longer mortgage terms or reduced interest rates will finally see some relief after months on the brink of foreclosure, many others, older homeowners who now owe more than the value of their home, still risk losing their homes.
“Unlike younger homeowners, older Americans have limited time to recover from financial catastrophe and if they lose their homes, they not only lose their shelter but also what is frequently their largest retirement asset. Their only option may be to rework their mortgages in bankruptcy court, but Congress has yet to decide to allow bankruptcy judges the latitude to treat primary residences the same way they can treat second homes, yachts and commercial property. With rising foreclosures undermining entire communities, this option would not only help hundreds of thousands of homeowners save their homes, it would help local communities and keep everyone’s property values from sliding further.
“AARP will continue to speak up for older Americans facing foreclosure by encouraging Congress to address their unique financial challenges with bankruptcy reform.”
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.5 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
