Study: Seniors Bear Brunt of Financial Crisis

A study suggests that stock market losses and falling home values are disproportionately affecting senior citizens, making it harder for them to recover from the financial crisis compared to younger Americans. Data from Golden Gateway Financial, a reverse mortgage lender, also show 25% of survey respondents are "either borrowing against their home or trying to sell it in order to generate income to survive." At the same time, Golden Gateway Financial reported, during the September-October-November period, its offices saw a 200% increase in the number of incoming calls by senior citizens facing foreclosure. In this economic climate, experts believe there will be a further increase in demand for mortgage products that will allow seniors to benefit from their equity. "As savings accounts continue to shrink, alternatives such as reverse mortgages are an even more attractive and natural way for senior citizens to make retirement easier," assistant professor at Haas School of Business, University California Berkeley, Thomas Davidoff, said. Golden Gateway Financial also said "seniors understand their precarious situation and are exploring aggressive actions to stay afloat in this economy."