Elderly homeowners at risk of foreclosure

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WASHINGTON, July 19 (UPI) -- Thousands of older U.S. homeowners are at risk of foreclosure or have already lost their homes, AARP said Thursday.

The group's public policy institute released a study that showed that 1.5 million homeowners 50 and older were forced out of their homes between 2007 and 2011. In December 2011, 600,000 mortgages held by older people were in foreclosure and payments on 625,000 were more than 90 days overdue.

About 3.5 million loans, 16 percent of the total held by older people, were underwater, with the outstanding debt greater than the value of the home.

"Older homeowners often rely on their home equity to finance their needs in retirement -- things like health care, home maintenance and other unexpected needs. The fact that so many older Americans have no equity at all is troubling," said Debra Whitman, AARP's executive vice president for policy.

The study found that older homeowners are still less likely to be delinquent on their mortgages than younger ones. But the delinquency rate is rising faster for older people, and those 75 or older are more likely to be delinquent than those younger than 75.

"Because before-tax income has decreased on average for people age 75 plus, while spending for mortgage interest, property taxes, utilities, and health care have increased, their economic situation is worsening."