I was shocked when I read this article. I thought the housing mostly affected the younger generation was really didn’t save their money. The older generation was supposed to be conserved.
AARP: Older Homeowners Hit Just as Hard by Foreclosure Crisis
07/19/2012 By: Tory Barringer
A report released Thursday from AARP suggests that older Americans may not have escaped the foreclosure crisis unscathed, as some previously thought.
The report, titled Nightmare on Main Street: Older Americans and the Mortgage Market Crisis, showed that many of the country’s older citizens are taking their mortgage debt with them into retirement. As of December 2011, an estimated 3.5 million older (age 50 and up) mortgage holders were underwater. Approximately 600,000 older homeowners were experiencing foreclosure, and another 625,000 were 90 or more days delinquent.
Between 2007 and 2011, an estimated 1.5 million older homeowners lost their homes. The foreclosure rate on prime loans in 2011 for older borrowers was 2.3 percent, 23 times higher than rate in 2007 (0.1 percent).
Even more worrying was the fact that homeowners age 75 and older showed the fastest rise in mortgage debt and had a higher foreclosure rate than younger members of the 50-plus group (3.2 percent).
“More older Americans are carrying mortgage debt than in the past, and the amount of that debt is also increasing … leading to their worsening situation,” said Debra Whitman, AARP executive vice president for policy. “It’s one thing if your housing value goes down in your 50s. It’s another thing if you’re 75. For some people, it’s not like you can go back to work.”
There are many potential issues unique to older citizens that may be fueling their foreclosure crisis. One such cause is the combination of fixed incomes and higher living costs. Seniors also cited the death of a family member as reason for default.
Adding to the problem is the fact that older Americans are more likely to have a mortgage rate above 8 percent (13 percent of Americans age 50 or older, as opposed to 10 percent of younger homeowners).
Santa Ana Overview
| Median home price is $266,000. Based on a rental parity value of $408,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 2 month(s). Momentum suggests worsening affordability. |
| Resale prices on a $/SF basis increased from $205/SF to $206/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates declined $7 last month from $1,703 to $1,695. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 6 |
Proprietary OC Housing News home purchase analysis 
1911 VALENCIA St Santa Ana, CA 92706
$362,500 …….. Asking Price
$189,000 ………. Purchase Price
1/8/1991 ………. Purchase Date
$173,500 ………. Gross Gain (Loss)
($15,120) ………… Commissions and Costs at 8%
============================================
$158,380 ………. Net Gain (Loss)
============================================
91.8% ………. Gross Percent Change
83.8% ………. Net Percent Change
3.0% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$362,500 …….. Asking Price
$12,688 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$349,813 …….. Mortgage
$92,871 ………. Income Requirement
$1,630 ………… Monthly Mortgage Payment
$314 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$91 ………… Homeowners Insurance at 0.3%
$364 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,399 ………. Monthly Cash Outlays
($249) ………. Tax Savings
($522) ………. Equity Hidden in Payment
$16 ………….. Lost Income to Down Payment
$111 ………….. Maintenance and Replacement Reserves
============================================
$1,755 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,125 ………… Furnishing and Move In at 1% + $1,500
$5,125 ………… Closing Costs at 1% + $1,500
$3,498 ………… Interest Points
$12,688 ………… Down Payment
============================================
$26,436 ………. Total Cash Costs
$26,900 ………. Emergency Cash Reserves
============================================
$53,336 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P828665 from our database. Please check back soon.
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$397,500 2030 VALENCIA St |
0.1 miles 3 bd / 1 ba 1,425 Sq. Ft. |
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$500,000 317 West 19TH St |
0.46 miles 3 bd / 2 ba 1,442 Sq. Ft. |
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$450,000 530 East VIRGINIA Ave |
0.63 miles 2 bd / 2 ba 1,126 Sq. Ft. |
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$449,000 1804 GREENLEAF St |
0.68 miles 2 bd / 1 ba 1,459 Sq. Ft. |
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$529,000 2319 North BENTON Way |
0.71 miles 2 bd / 1.75 ba 1,351 Sq. Ft. |
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$2,650,000 1522 North FLOWER St |
0.87 miles 5 bd / 2 ba 1,381 Sq. Ft. |
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$378,500 742 North GRAND Ave |
0.91 miles 3 bd / 2.75 ba 1,436 Sq. Ft. |
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$240,000 910 FLOWER |
1.04 miles 3 bd / 1 ba - Sq. Ft. |
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$379,000 1609 North ROSEWOOD Ave |
1.12 miles 3 bd / 1.75 ba 1,470 Sq. Ft. |
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$305,000 909 East CHESTNUT Ave |
1.38 miles 4 bd / 1.75 ba 1,065 Sq. Ft. |
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If this were to pass, inventory would move through the system faster.
California looks to expedite short sale process
Rep. Jerry McNerney (D-Stockton) recently introduced a bill to speed up the short sale process by requiring subordinate mortgage lien holders to make a decision on a short sale within 45 days.
McNerney’s bill proposes that if the lender does not make a decision within the given time period, the short sale will be approved on the 46th day.
The bill, titled Fast Help For Homeowners (FHFH) Act, received strong support from the National Association of Realtors (NAR).
“Second mortgage lien holders frequently hold up and cancel the short sale transaction while trying to collect the largest possible payout in exchange for releasing the homeowner’s lien, even though the secondary lien holder often gets nothing if the home ends up going into foreclosure,” said NAR President Moe Veissi, in a statement. “While efforts have been made to improve primary lien holders’ response times, issues still abound with second and subsequent lien holders, and this legislation is a step in the right direction.”
The NAR also stated that its members continue to report delays in completing short sale transactions due to drawn out response times for whether or not an offer was accepted.
In a recent DS News interview with RealtyTrac VP Daren Blomquist, issues with second liens was also noted as problem for servicers when attempting to complete a short sale transaction.
The bill is cosponsored by Reps. Dennis Cardoza (D-California), Tom Rooney (R-Florida), George Miller (D-California), Jim Costa (D-California), Barbara Lee (D-California), and Richard Nugent (R-Florida).