As a result, many have turned to forbearance plans in an effort to manage their financial burden. According to a recent survey from The Truth About Mortgage, 46 percent of homeowners in forbearance plans have still made their mortgage payments on time.
The survey found that 37 percent of mortgage holders said they have been able to make their full payments while 18 percent said they have been able to make partial payments. While these numbers show some progress, they do not reflect the totality of the situation. Many homeowners are still facing significant financial hardship, with 40 percent indicating they can only make partial payments and 18 percent saying they are unable to make any payments at all.
The majority of those surveyed (54 percent) said they were using forbearance plans to stay current on their mortgage payments. Forbearance plans allow borrowers to postpone their payments for a set period of time, typically 3-6 months though some lenders offer longer periods. The survey also revealed that 39 percent of respondents chose not to enroll in forbearance plans and that 7 percent were unsure if they wanted to enter into forbearance plans.
The survey results indicate that most homeowners are taking steps to remain current on their mortgage payments during the pandemic. While there is no guarantee that all home loans will be paid back in full, the overall response rate indicates that many are attempting to remain financially responsible. This can be credited to the federal government’s programs as well as individual lenders’ incentives to help make it easier for borrowers to pay their debt off.
Unfortunately, the news isn’t all positive. The survey revealed that 18 percent of borrowers believe they are unable to make any payments whatsoever. This can be attributed to a variety of different issues such as job loss or reduced wages. The survey indicates that these individuals may need to explore alternative solutions such as loan modifications or refinancing in order to remain current on their mortgage payments.
Overall, the survey shows that most borrowers have been able to stay current on their mortgage payments during this difficult time thanks to the use of forbearance plans and other government programs. However, the 18 percent who are unable to make any payments at all must continue to explore alternative options in order to remain current on their debt. It’s important for borrowers to remain aware of their options and seek assistance when needed in order to protect their financial future.
This article was contributed on Aug 14, 2023