The Obama administration’s positive steps in curtailing the United States’ housing crisis will provide solid progress toward recovery. The ongoing housing crisis has affected people in every community, but among those most at risk is the nation’s senior population. By taking action now, the federal government can help protect the nation’s elderly, who have a great deal to lose in this housing crisis. As the largest national Jewish sponsor of affordable senior housing and a leading advocacy group on housing, aging, and healthcare in the United States, B’nai B’rith International (BBI) is committed to ensuring the well-being of seniors, and of all Americans.President Obama’s plan provides incentives for lenders to refinance and modify loans. Many of the provisions will help seniors avoid foreclosure by allowing them to modify their mortgages. This will help protect their major asset, their home, and keep community home values stable.
“Plummeting home values take a huge toll on everyone, but especially on seniors whose retirement funds have already been hit by the market slump,” said Marvin Siflinger, chair of the BBI senior housing committee. “The foreclosure crisis reaches deep into every aspect of our nation’s economy. Getting help to those in need will go a long way toward helping the economy get back on the right track.”
Seniors face an array of unique problems in this housing crisis. Millions of older Americans rely on their home equity to provide retirement income and to finance long-term services and support. Rising foreclosures threaten the value of their homes, their primary assets. Estimates suggest that every foreclosure in a community decreases neighboring home values by up to 9 percent. As home values fall, many seniors’ homes won’t supply enough equity to be sustainable, if they sell or borrow against the value of the house. Those who already have refinanced to pay bills and got unfavorable terms and rates have too little equity to refinance again. Their mortgage payments are beyond their means, and the mortgages sometimes exceed the market value of the home. In addition, foreclosure of rental properties threatens affordable housing for the hundreds of thousands of elderly renters.
This plan can only work for everyone, and particularly for seniors, if government and private groups, including BBI, help disseminate reliable information. Many Americans now have loan-offer-fatigue and are wary of junk mail and phone solicitations. The elderly, many of whom have fallen victim to predatory loan practices, need to be made aware of the program and guided to reliable information. BBI is committed to working with lawmakers to reach out to older adults. In the coming months, we will be using our website, e-messaging, speaking engagements, and print media to get the word out and help make this program a success.
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