Does Mortgage Delinquency Lead To Negative Attitudes For Homeownership?

 

The number of delinquencies nationwide is still significantly high. Just over 7 percent of all mortgages are delinquent; but not yet in foreclosure. Here’s a breakdown of the numbers:

Overall, the number of properties that are 30 or more days delinquent or in foreclosure totaled 5,569,000.

The total number of properties 30 days or more days past but not yet in foreclosure was about 3,542,000 while the number of properties in foreclosure inventory totaled 2,027,000.

The number of properties that are seriously delinquent, or 90 or more days past due, but not yet in foreclosure was approximately 1,575,000. (Source)

In an effort to measure the attitudes of delinquent and underwater borrowers, Fannie Mae sent a questionnaire to delinquent and underwater homeowners.  Not surprisingly, 52 percent of delinquent borrowers said that they would likely rent if they moved.  That’s probably not because they don’t want to own a home; it’s more likely an indicator of their financial ability to take on homeownership responsibility. But what was even more interesting was that a significantly smaller number of underwater homeowners (18 percent) said they would become renters if they moved. It’s important to note that the underwater homeowners surveyed were all current on their mortgage payments, which is an indicator that they can still financially afford to own a home. The survey also found that delinquent borrowers were more likely to believe it’s acceptable to forgo payments if they’re facing financial hardship. In response to the survey, Fannie Mae concluded that preventing delinquency is imperative to preventing the development of negative attitudes towards homeownership. To read more results of the survey visit the  Fannie Mae survey site.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.