WASHINGTON – Nov. 5, 2013 – A recent study by Fannie Mae found that delinquent borrowers – homeowners facing foreclosure – are not bitter about homeownership in general. In fact, the study author concludes that the “majority still believe in the benefits of homeownership.”
The survey found the following major points:
- Delinquent borrowers’ views toward the housing market have grown more favorable since 2012.
- Delinquent borrowers’ have attitudes have generally moved closer to those of the general population of mortgage borrowers. They expect home prices to go up, believe that buying a home is a safe investment, and they even expect to buy another home on their next move.
- The majority of delinquent borrowers believe in the financial and lifestyle benefits of homeownership, though at levels somewhat lower than the general population of mortgage borrowers.
- Delinquent borrowers are also becoming more optimistic about their financial situation and have made considerable positive shifts during the last year. However, delinquent borrowers still lag the general population in attitudes about their personal financial situation, though positive shifts are starting to close the gap between the groups.
- Driven by the desire to lower payments, delinquent borrowers are more likely to have unsuccessful attempts to refinance than the general population of mortgage borrowers.
- Delinquent borrowers are more likely to say they’ll refinance to lower their monthly payments, compared to the general population of mortgage borrowers that more often refinance to shorten the term of the loan.
- Delinquent borrowers more often cite barriers to refinance, including not qualifying and not trusting lending institutions.
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