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According to a new Freddie Mac/Roper Public Affairs and Media survey, 57 percent of the nation's late-paying borrowers still don't know their lenders may offer alternatives to help them avoid foreclosure.
This represents a slight improvement from 2005 when the first Freddie Mac/Roper survey found that 61 percent of delinquent borrowers didn't know their mortgage lender offered workout options. The survey also found an increase in the percentages of delinquent borrowers who recall their lenders reaching out to them (86 percent) and who in turn reached out to their lender (75 percent) to discuss workout options.
"The new survey shows efforts to get borrowers to call counselors are starting to work, but that too many at-risk borrowers are still unaware their servicers routinely provide alternatives that can help them stay in their homes," said Ingrid Beckles, Freddie Mac's Vice President of Servicing and Asset Management. "This fact underscores the importance of convincing borrowers to pick up the phone, call their servicer, and find out whether they can avoid foreclosure."
Other Key Findings:
- The percentage of delinquent borrowers who are aware they can talk to credit counselors increased to 44 percent from 36 percent, suggesting industry foreclosure avoidance awareness campaigns may be having an effect.
- The most common reasons delinquent borrowers gave for not contacting their lenders included believing there was nothing the servicers could do (33 percent) and not having enough for a payment (16 percent).
- Slightly more than one in 10 delinquent borrowers (12 percent) denied they were having trouble paying their mortgage.
- The Internet is the first mortgage information stop for 25 percent of delinquent borrowers.
- The survey results underscored a continued need for financial literacy programs.
Recent News Articles:
"Foreclosure Isn't a Foregone Conclusion",
The Washington Post,
by Ilyce R. Glink and Samuel J. Tamkin
"Borrowers Still Slow to Get Help",
The New York Times,
by Bob Tedeschi
"Homeowners Late on Loans Don't Often Seek Help",
USA Today,
by Noelle Knox
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In remarks to a key meeting of the National Association of Home Builders, Chairman and CEO Richard Syron discussed the housing downturn, the temporary loan limit increase, and pressures on pricing. He emphasized the shareholder-owned design of the GSEs, declaring that it's not enough to say we need the GSEs, "We need them to be strong and vibrant."
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