“I planned to die in that house,” he said. “But I guess it won’t work out that way.”
Facing Foreclosure After 50
MABLETON, Ga. — Roy Johnson fell so far behind on his $1,000-per-month mortgage payments that last year he allowed the redbrick, three-bedroom ranch he had owned since 1963 to lapse into foreclosure.
“I couldn’t pay it any longer,” he said. “One day, I woke up and said, ‘Hell, I’m through with it. I’m walking away from the house.’ ”
That decision swept Mr. Johnson, 79, into a rapidly expanding demographic: older Americans who have lost their homes in the Great Recession. As he hauled his belongings by pickup truck from this Atlanta suburb and moved into his daughter’s basement, Mr. Johnson became one of the one and a half million Americans over the age of 50 who lost their houses to foreclosure between 2007 and 2011. Of those, the highest foreclosure rate was for homeowners over 75.
Once viewed as the most fiscally stable age group, older people are flailing. On Wednesday, AARP released what it described as the most comprehensive analysis yet of why the foreclosure crisis struck so many Americans in their retirement years. The report found that while people under 50 are the group most likely to face foreclosure, the risk of “serious delinquency” on mortgages has grown fastest for people over 50.
Copy of the report below…