The Sunshine State is home to a vast number of retirees, and unfortunately, it is also known for high foreclosure rates. Foreclosure is not an issue most people presume they will have to deal with in retirement, but nonetheless, retired homeowners are foreclosed on every day.
Common Causes for Foreclosure in Retirement
Those in retirement are operating on a fixed income, so a financial bump in the road can be all the more troublesome. A costly, unexpected home repair might put a retiree out of their home if his mortgage payment falls behind as a result. Medical bills are another common cause of financial distress among retired Americans. With age comes an increased likelihood that one will get sick, and medical bills are not cheap. Divorce is another commonly reported expenditure that can lead to foreclosure. Lastly, even a retiree can find himself dealing with a loss of income. Those depending on a stock-based retirement fund, like an IRA or 401(k), can have their income dangerously affected by a downturn in the economy.
Preventing the Problem
The best advice for retirees during a time when they are supposed to be reaping the benefits of decades of hard work is to plan for a financial crisis. Practicing responsible financial behaviors can mitigate future issues before they even arise. Nobody can truly foresee an expensive medical emergency, but that does not mean one should not save for a rainy day. Removing the risk presented by an unpredictable economy can be easily done by transferring retirement savings from and IRA or 401(k) into a bond with more security. While taking out debts which are not absolute necessities is never advisable, it is even more important to be mindful of avoiding this the nearer retirement draws. Helping out children or grandchildren with their education or wedding might seem like a nice gesture, but paying off any loans taken out to do so will be difficult after retirement. More than anything, making saving for retirement a priority is key. The more a retiree has in his savings, the less likely it is that a financial set back will put him out of his home.
Sometimes, no matter how hard retirement is planned for, situations can arise which result in financial turmoil. If you are in this situation, and foreclosure seems imminent, you still have options. Call a Boynton Beach foreclosure attorney at Kelley & Fulton today to learn how you can turn your situation around.