Financial Difficulties Facing Seniors

Approaching the age of 60 should be one of the most exciting times of your life. You can finally stop working all the time and begin spending your time doing the things you???ve been waiting to do for the last 20 to 30 years.


Traveling, buying a cottage, getting that little red Ferrari you always wanted...sounds pretty much perfect, right? Not really.




The reality is, many seniors are finding themselves in less-than-perfect situations when it comes to retirement and are quickly realizing that their retirement savings just isn???t going to cut it.




Financial Burdens




Average North American families face financial difficulties every day. Unfortunately, while many families manage to pay off most of their loans by the time they hit 50, there are many seniors who are still facing difficulties well into their 60???s and 70???s.




Depending on when (and if) you had children, when you bought your first home and any other expenses over the years, it could be virtually impossible to have everything paid off by the time you turn 60. Some individuals are just turning 60 when their children are graduating high school, which means college savings are still very high on their list of financial burdens. Likewise, if you didn???t buy your home until you were 40 or 50, you may still be paying off your mortgage.




These expenses are only going to become more difficult to pay as you approach retirement and your income experiences a severe decrease.




Solutions




There are many ways to relieve some of the financial burden you may be facing as a senior. Chances are you have put a lot of money into your home. You know your home has a lot of value, which opens up a lot of opportunities. Talk to a financial advisor about home equity loans or reverse mortgages.


These will help give you some money now without having to pay through-the-roof interest rates like you would have to do on normal loans. Using some of this cash to pay for your children???s college savings will help save a lot of money on interest as well.




Another option is selling your home. If your children have moved out and it???s just you (or you and your significant other), there???s really no need for one or two people living in such a large home. Selling your home and buying something smaller (and less expensive) will open up opportunities for you to have a little extra spending money for trips, cars, cottages etc.




Spend and save your money wisely. It???s important to start saving as early as possible. And, if you are in financial difficulty, remember that you???re not alone. Millions of Americans are in the same position as you and everything will work out in the end.

Mary Sanders is an expert on senior finance and wants to help other seniors with their retirement planning needs. Mary worked as a finance manager for 34 years and has lots to share. For more financial advice, visit VivaPrime.com.

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reverse mortgage bank failure: reverse mortgage bank failure

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Foreclosures Soar: Reverse Mortgages to Aid Distressed Seniors

According to the Mortgage Bankers association, there are now a record 1.35 million homes in foreclosure. The delinquency rates also rose to 6.99% which is up from 5.59% a year ago.




Sub-Prime loans which started the real estate delinquency problems, are still leading the delinquencies at almost a 20% delinquency rate and also lead foreclosures are no longer the only loans on which the delinquency and foreclosure numbers are rapidly rising. Mortgage delinquencies and foreclosures are expected to continue to soar as the jobs-lost numbers continue to worsen.




While the delinquency rates hit almost 7% (those include all borrowers who are more than 30 days past due on their mortgage payments), almost 3% of all mortgage holders are in some phase of foreclosure proceedings (2.97%).




According to the MBA, the actual number of homes in foreclosure could be even higher as the number of loans in the 90 or more days delinquent but not yet in foreclosure status has grown considerably but these loans may not have been placed into foreclosure yet due to various moratoriums, greater lender forbearance, etc.




When you add the job losses reported today of 533,000, more than in 3 decades, will truly help the future mortgage foreclosures soar yet further. Lenders and servicers continue to work with borrowers to try to craft repayment schedules and modify loan terms.




What no one has a way to know yet, is whether these actions will only delay the inevitable, or whether these actions will allow borrowers the opportunity to actually catch up and get themselves out of trouble once and for all.




Economic weakening in Florida and California has played a large part in the soaring foreclosure numbers. California and Florida have been leading in foreclosure numbers primarily due to massive housing starts, speculation and weak underwriting. However, now that you can add job losses of over 156,000 in Florida and 101,000 in California, those numbers are rising even more.




With the weakening economy and with the jobs lost, the effect on seniors has been devastating. Seniors have seen their life savings and their retirement funds disappear lately with the $2 Trillion Dollars that the State Department has estimated has been lost in the capital markets.




Now with the jobs market tightening as much as it has and unemployment rising to 6.7%, many seniors who find they can no longer support themselves without re-entering the job market, are finding it increasingly difficult to find the employment they require just to get by.




Many now find themselves among this soaring delinquent and foreclosure group. These are individuals who may never have had a blemish on their credit in their lives but are caught up in an economy in which they just cannot contend.




However, for those seniors who have chosen to obtain the HUD Home Equity Conversion Mortgage (HECM or Heck-Um), they do not have to be concerned with the soaring foreclosure rates and whether or not they can now make their mortgage payments.




With the HECM there are no monthly payments. Borrowers live in their homes for life with no monthly payments, and therefore do not have to worry about the possibility to being caught up in times like these with the soaring foreclosure rates.




This is one Government program which has really helped hundreds of thousands of seniors and given them a safe haven in an uncertain economic world.

Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
Reverse Mortgages Pros and Cons

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Article Source: www.articlesnatch.com