Majority of Homeowners Approved for Forbearance May Not Have Needed It

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A new report from LendingTree finds that the majority of homeowners approved for a mortgage forbearance may not have needed one.  According to their research, of the homeowners surveyed, 25% applied for forbearance due to a coronavirus-related hardship and 80% were approved.  But here’s where it gets interesting;  While the majority of people who applied were approved, only 5% said they wouldn’t have been able to pay their mortgage without forbearance and 72% of those who received forbearance reported feeling at least a little guilty about it.  In other words, the vast majority of respondents claimed they could’ve made payments without forbearance.  Indeed…

“Regardless of whether or not you need one, getting a forbearance may still be a good strategy for managing your personal finances. With uncertainty around how long the COVID-19 crisis will last and how deep its economic impact will be, preserving cash is a priority for many Americans. A mortgage forbearance temporarily removes mortgage payments from the equation. This pause can provide more wiggle room in homeowners’ budgets until the forbearance period ends.”

Click here to read the full report at LendingTree.com.

 

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Director of Education & Outreach, National Real Estate Investors Association

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