home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Delinquent Borrowers Unaware of Options

Freddie, Roper survey findings released

December 12, 2005

By MortgageDaily.com staff

Many delinquent borrowers needlessly lose their homes to foreclosure, according to a new report.

Because over half of all foreclosed borrowers never contact their lender, Freddie Mac and Roper Public Affairs and Media set out to find the reasons why through a survey they claim is the nation's first to learn why more late-paying borrowers risk losing their homes rather than reaching out to their mortgage servicers.

The survey was reportedly based on a 14-day telephone study conducted in August on 2,031 borrowers more than one month past due on their mortgage, according to an announcement Monday.

Three-quarters of the delinquent borrowers recalled being contacted by their servicers but, for a variety of reasons, neglected to follow up and discuss workout options, the survey said.

Over a quarter -- 28 percent -- of the respondents said they did not follow up because there was no reason to talk to their servicers or because their servicers could not help them, the report said, and another 17 percent said they could take care of their payment problems without any help. Inadequate funds to pay was cited by 7 percent, while other reasons included embarrassment, fear, or not knowing whom to call.

While the lack of borrower follow-up may explain why 61 percent of the respondents cited being unaware of a variety of workout options that could help them overcome short-term financial difficulties, 92 percent said they would have talked to their servicers had they known such options were available, Freddie and Roper noted.

"Part of the problem is that the data shows that there's a knowledge gap: People's interest in the options available to them is quite high, but their awareness of these options is quite low," said Elizabeth Armet, a Roper vice president, in the statement.

A study last year by Freddie concluded that repayment plans could lower the probability of home loss by 80 percent among all borrowers and by 68 percent among low-to-moderate income borrowers, according to the announcement, which added that Freddie and its servicers have helped more than 100,000 borrowers avoid foreclosure over the past two years.

"These findings are consistent with what Wells Fargo Home Mortgage has done and the great success we have had during the past several years with our early intervention process," said Patrick Carey, a Wells' default and retention operations executive, in the announcement. "We try to educate customers to contact us early in times of financial crisis, and hope that they will learn from studies like these that their lender can be their best resource when financial strain threatens their homes."

Deb Oakley, National City Mortgage senior vice president, said the company encourages troubled borrowers "to proactively contact their lender and explore the options that could help them avoid foreclosure," and its also works "with credit counseling agencies to further help borrowers learn how to take charge of their situation."

Amongst other findings of the Freddie/Roper survey was that 47 percent of the defaulters were first-time homeowners and that 62 percent of homeowners in good standing had owned a home in the past. Delinquent borrowers reportedly earned a median annual income of $52,400 a year, while good standing borrowers earned $4,300 more.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders