That recent headline by MSN Money.com sure is an attention grabber. But the cold hard facts of this economic crisis and its impact on seniors should be grabbing everyone’s attention. The equity in the vast majority of people’s homes is their single greatest source of net worth. The unprecedented slide in the real estate market is a huge hit for just about everyone. Recent statistics show that in less than a year the total amount of home equity in American’s homes that has vanished rose from $500 billion in 2008 to $3 trillion by the beginning of this year.
Families are trying to find ways to cope with this catastrophe. The number of seniors living with their adult children is sharply on the rise with a 62% increase from 2000 to 2007. Many of these seniors are experiencing declining health and would be better served to live in an assisted living environment, but they can no longer afford the costs. Assisted Living companies all across the country are reporting declines in occupancy and are now reacting to this crisis by providing additional resources and incentives to help people make the move.
Some companies are offering incentives such as paying for moving expenses, waiving the first month rent or offering shared living and shared expenses with another resident. Funding programs such as life insurance settlements, bridge loans and VA benefits are being offered by more assisted living properties to help people overcome the loss of equity in their home or investment portfolios. It is in times of crisis when people must do all they can to adapt and inform themselves of what options are available to help them raise the money they will need.