Only 5 percent of homeowners approved for forbearance couldn't pay mortgage without it, survey finds

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Another 26.2 percent could have paid their mortgages, but would have had to skip other essential bills.

"Under the CARES Act, borrowers are entitled to an initial forbearance period of up to 180 days, upon a borrower's request. Also, upon a borrower's request, the forbearance must be extended for up to an additional 180 days. A borrower can, at any time the borrower chooses, shorten the forbearance and resume repayment of the loan," the HUD fact sheet states.

The LendingTree survey, which did not specify how many people participating in the questionnaire had federally backed mortgages, also found that 26.2 percent of those who received forbearance could have paid their mortgage, but would have had to skip other essential bills. This means that roughly 70 percent of those who received forbearance did not necessarily need it, and the survey found they felt guilty about it.

"The main reason that those almost 70 percent who said they applied for forbearance anyway said they just wanted a break from their monthly payment," Brianna Wright, a senior consumer research specialist at LendingTree, told WTOP Radio, located in Washington, D.C. "There was definitely a level of guilt. We found about a third felt really, really guilty about it and another 38 percent felt a little bad about it. I think that's because asking for help definitely isn't easy and there can be a level of shame or embarrassment associated with it, even when you need the help. So that is going to be amplified when deep down you know you didn't really need that forbearance," Wright said.

"I think one thing to keep in mind is that the pandemic has created so much uncertainty and instability. Even though homeowners may not have needed a forbearance, it's likely that homeowners wanted some wiggle room in case they needed extra cash, had additional expenses or thought their income may be at risk," Greuling saidWASHINGTON, DC - MARCH 27: U.S. President Donald Trump signs H.R. 748, the CARES Act in the Oval Office of the White House on March 27, 2020 in Washington, DC.

Source: Loan Digest (loandigest.net)

 

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What do you mean by “approved”? Everyone who asked for forbearance was approved, and many were placed in forbearance without their consent.

If we lose a month, they lose a month...that simple..

Bullshít; flawed data sampling

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