Most of the time, we tend to think that by the time people become seniors, they have their house paid off. Either that, or they live somewhere they don’t own and pay rent each month. While most people would assume seniors don’t have mortgages, that is simply not the case, according to the research. As it turns out, around a third of all seniors ages 65 and up have a mortgage.
Having a mortgage when you are a senior can be a challenge. This is because seniors usually live on a fixed income, meaning it is around the same each month. If their other bills increase, yet their income does not, then it becomes more difficult to get the mortgage paid each month. Over time, this can lead to seniors falling behind on paying their mortgage and can lead to it going into default and foreclosure.
Beware of Foreclosure
Foreclosure is a situation that all seniors should be aware of if they own their home. If you fall behind on making the monthly mortgage payment to the bank, the bank can start a legal procedure called a foreclosure. The foreclosure is a legal process that will remove the person from the home, have the home sold, and then the money will be used to pay the bank what it is owed. The amount the home is sold for is usually much less than what it is worth, so it sells quickly, and the bank gets its money.
If a senior loses their home to foreclosure, they may end up losing equity that was in the house if it were to be able to be sold for market value. It can destroy their credit, and it can leave the person homeless. If at all possible, it is better to try and address the situation and keep it from going through the foreclosure process. There are numerous options that seniors have when they are in need of mortgage assistance.
Mortgage Assistance Programs
Seniors who are struggling with their mortgage do have places they can turn to for help. Assistance programs can provide help with paying the mortgage, avoiding foreclosure, and more. Some programs will also help homeowners pay for house repairs, leaving more funds that the person can use to pay for their mortgage.
To qualify for the programs, you typically have to be considered low-income. You will have to turn in financial information so they can see if you meet the requirements. You may also have to provide information regarding your assets so they can ensure that you don’t exceed what is allowed for their particular programs.
Here are some mortgage assistance programs that will provide help for seniors and others who are struggling financially:
- The Lending Institution – When you are struggling to pay your mortgage, the first place you should call is your lender. The bank that the mortgage is through should be notified so that you can try to work with them regarding the situation. They may have programs that you can utilize to help make it easier to make the payments. Inform them of your financial situation and ask if they have programs or options that can help.
- Housing and Urban Development (HUD) – This federal government agency provides many people each year with mortgage assistance. They often help people who are facing foreclosure so that they don’t lose their homes. Contact the HUD office in your state to see what programs you may qualify for. If you have a low income and are a citizen or legal non-citizen, you may be able to get help paying for your mortgage so that you do not lose the home to foreclosure. Providing foreclosure assistance is one of the main options they provide to people. To find the HUD office in your state, click here.
- Public Housing Authority (PHA) – Each state has at least one Public Housing Authority office, which is in charge of helping people in that state with their housing needs. Contact the one in your state to see what options they have to help you out. They are a good place for finding housing and mortgage referrals as well. To find a state Public Housing Authority near you, click here.
- Local Housing Authority Offices – If you live in or near a city there is a good chance that there is a local housing authority office you can contact for assistance. They serve the people in their county or local area with programs to help with their mortgage, avoiding foreclosures, paying rent, and more. Contact your local city official office to see where your local housing authority office is.
- Senior and Aging Centers – These places are good resources for seniors and are found around the country. The centers will provide referrals to many programs that will provide seniors with the type of assistance they are in need of. Let them know you need mortgage assistance and ask what places they can refer you to. They should be able to provide you with various resources to contact in your area.
- Churches – There are many churches around the country and they will usually help people who live in the community. Contact the churches in your area to see if they have programs in place that can help seniors with their mortgage or if they can refer you to program in the area that may help. You do not have to be a member of the church to turn to them for assistance.
Additional Resources
In addition to the programs listed above, you may be able to find mortgage assistance by reaching out to organizations in your community. There are helpful organizations that will provide you with referrals to assistance programs if they cannot help you themselves. Some programs may be able to provide mortgage assistance, even if it is not what the intention of their organization is. Contact as many resources as you can to increase your chances of finding a program that will provide mortgage assistance.
