Christian Real Estate Blog

Study: Delinquent mortgage holders don't know their options

Inman Real Estate News - Study: Delinquent mortgage holders don't know their options: "Nearly two-thirds of borrowers behind on their payments are unaware of the workout options available to them, according to a study by Freddie Mac, the company said today.

The mortgage giant conducted the study to find out why late-paying borrowers risk losing their homes rather than contacting their mortgage servicers. The borrowers never contact their lender in more than half of all foreclosure cases, according to Freddie Mac.

The survey, conducted by Freddie Mac and Roper Public Affairs and Media, was undertaken to help find out why, Freddie Mac said.

The Freddie Mac/Roper survey found that 75 percent of the delinquent borrowers surveyed recall being contacted by their servicers, the government-sponsored enterprise said. Mortgage servicers collect monthly housing payments on behalf of Freddie Mac or other investors.

Of the group surveyed for the study, 28 percent said there was no reason to talk to their servicers or that their servicers could not help them, 17 percent said they could take care of their payment problems without any help, and 7 percent said they didn't call because they didn't have enough money to make the payment, Freddie Mac said."

posted by Justin Smith @ 12/12/2005 10:22:00 AM