Senior Citizens Entering Retirement With Large Mortgage Debt

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

There is an increasing concern over the number of college students who are starting off their career with huge student loan debt.  This concern has been highly publicized, and very well known.  What is not as well know, but in my opinion of an equal concern, is the increasing number of Senior Citizens Entering Retirement With Large Mortgage Debt.

Data from the CFPB's Office for Older Americans shows the number of Americans 65 and older with mortgage debt has substantially since 2001, and continues rise.  Data from the CFPB's Office for Older Americans further shows the number of homeowner between the age of 65 to 75 who are 90 days or more delinquent on their mortgage rose from has also increased during the same time period.  This mean senior citizens are at risk of losing losing their home to foreclosure more so than ever before.

These increasing number of senior citizens at risk of losing their homes, is mainly due to income loss at time of retirement.  More and more American Workers are not setting money aside for retirement.  A couple of reasons for this is lack of financial planning, but even those who have set funds aside in retirements plans have found themselves dipping into those funds due to financial hardships such as loss of jobs.  Others have set money aside but the increasing cost of living has made it difficult for their retirement funds to keep up.

This does not appear to be an issue which will go away anytime soon.  College Students facing large student debt are unable or putting off setting aside money for their retirement in order to payoff their loans.  As a result saving for retirement is not a priority right now for them, and they will be losing valuable years in accumulating money for their retirement.

Whatever the reasons maybe, this is one more sign of what the economic condition our country has been going through has create.  Where once senior citizens were able to pay off their mortgages while they were still working, today they are not, resulting in Senior Citizens Entering Retirement With Large Mortgage Debt.  What was suppose to be the golden years for many senior citizens are not so golden anymore.  Hopefully the recent larger gains in the stock market will continue, and will produce a higher rate of return for 401K's and other retirement plans, and create better economic conditions for future senior citizens.

 

******************************************************************************

 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by

******************************************************************************

 

 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Connecticut
Groups:
The Lounge at Active Rain
Old Farts Club
2016 Market Reports
Tags:
mortgage delinquency rate

Spam prevention
Show All Comments
Rainmaker
3,822,383
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I feel sorry for these seniors. I was not aware of it. Thank you for sharing.

Dec 22, 2016 04:59 PM #1
Rainmaker
4,050,557
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi George.  The number of folks who are not prepared for retirement is staggering.  And, I'm scared that it will cost the rest of us our retirement funds.

Dec 22, 2016 05:04 PM #2
Rainmaker
447,033
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

This is a sad and sobering truism George.  It's forcing our seniors to continue to work well into their golden years.

Dec 22, 2016 05:30 PM #3
Ambassador
2,478,587
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

That is difficult to appreciate.  Work all your lives, try to get some retirement income from savings and still have to send a check out monthly for a mortgage

Dec 22, 2016 06:08 PM #4
Ambassador
3,487,638
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I am working with 2 widows nearing retirement age. One doesn't have to work because her husband was careful and provided for her future income. The other has to continue to work and has very little equity because she has borrowed it out of the home. I feel sad for her situation.

Dec 22, 2016 07:48 PM #5
Rainmaker
515,207
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

We're starting to see a lack of financial discipline with every generation. Too much spending, not enough frugality, and nobody is ever satisfied. Thanks for the information!

Dec 22, 2016 07:52 PM #6
Rainmaker
49,072
Clark Niblock
RESupermen at Niblock Co. Realtors - San Antonio, TX
Alamo City focused. National and Global connected.

Thanks for reminding us of this sobering truth!

 

Dec 22, 2016 08:35 PM #7
Rainmaker
1,425,136
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi George - those are very troubling statistics for sure especially since there are not many options.

Dec 22, 2016 08:42 PM #8
Rainmaker
2,559,213
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George sad that this post is not on the coveted FEATURED list... just under the radar.... I told Diane we have to either work harder or I have to make larger sales or pack our bags but not carry a large mortgage:)Endre

ps. what do you think the solution was from her standpoint?:))

Dec 22, 2016 09:43 PM #9
Rainmaker
2,642,842
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

This does not surprise me...this goes hand in hand with gray divorce and short sales later in life.

Dec 23, 2016 01:50 AM #10
Rainmaker
2,217,407
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi George... I had not given this a whole lot of thought until I read your post. A troublesome issue for sure.

Dec 23, 2016 06:07 AM #11
Rainmaker
1,130,636
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good morning George,

Sad but true!

Glad I was brought up to pay cash for most items and the house is free and clear.

Make yourself an astonishing day.

Dec 23, 2016 06:24 AM #12
Rainmaker
1,408,521
Sandy Padula and Norm Padula, JD, GRI
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

George Souto I believe this is cause for much more concern that college debt as there can be so many people forced to live in their cars, not get the proper healthcare, or nutrition at this later stage of life. Very serious!

Dec 23, 2016 07:11 AM #13
Ambassador
1,306,431
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have encountered many older citizens who have had to refinance in order to pay debts. I understand that paying off high percentage credit cards is good but it still creates a lot of debt and the possibility that the cards will be used again.

Dec 23, 2016 07:53 AM #14
Ambassador
2,572,457
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi George - This is alarming news. We haven't seen anything obvious with this, but it makes sense and could lead to many problems. Thanks for the heads up.

Dec 23, 2016 11:27 AM #15
Rainmaker
2,522,581
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

George,  I'd be willing to be that the astronomical increase in health care costs is a major contributing factor into this issue.  Loss of jobs ... yes. Poor or no financial planning - yes.  Unexpected 10X the cost in health care ... NO ONE planned for that. I sure did not.  

Dec 23, 2016 04:35 PM #16
Rainmaker
2,066,238
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Interestingly enough, I had this topic running around in my head a couple weeks ago.  I know several cases where seniors are trying to enter retirement with huge mortgage debt.  In nearly every case, it was the result of trying to start over after the 2008 housing collapse.

Dec 23, 2016 04:55 PM #17
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
3,377,359

George Souto

Your Connecticut Mortgage Expert
Call Me With All Mortgage Questions
*
*
*
*
Spam prevention