Majority of Homeowners Approved for Forbearance May Not Have Needed It
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% of 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.”
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