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One very ugly by-product of the current foreclosure frenzy is the increasing number of seniors who are losing their homes as victims of circumstances that (a) they did not cause, and (b) are powerless to do anything about.

It's a national disgrace.

USA Today recently reported that over 600,000 seniors were either late on their mortgage payments and/or already in foreclosure. Many of these folks are on fixed incomes and, due to the myriad of circumstances that are beyond their control (decreasing home values, tightening credit qualifications, sky-rocketing living expenses, and much more), it is all but impossible to sell or refinance.

Many of the financial powerhouses are quite willing to foreclose on anyone that is technically in default; regardless of age or circumstances.

So, in the case of a senior who has diligently accumulated some equity over the years but has understandably fallen behind, the opportunity to sell his or her home and/or use the equity (if it hasn't already disappeared to due to the failed economy) to establish residence in an assisted living facility or retirement home can disappear in a heart-beat as the hammer falls.

But hefty fees and profits will evolve for those who orchestrate these foreclosures.

You would think the current administration would put this situation somewhere near the top of the list of things that need to "change".

- Ed Smith, Publisher
The EHS Letter Manual