Delinquent Borrowers Not Giving up on the American Dream

For delinquent borrowers, the majority say they aren’t giving up on the American Dream, despite their recent struggles.

A survey conducted by Fannie Mae finds that delinquent borrowers – those late on their mortgage payments and at risk of foreclosure – are still committed to the idea of home ownership, even if they are having some difficulties with it now.

Particularly in the past year, and as home prices rise, delinquent borrowers have become more upbeat about housing, the survey shows. The survey found that the majority still believe in the financial and lifestyle benefits of home ownership.

In the survey, the delinquent borrowers were asked if renting or home ownership was better for building wealth. Seventy-four percent said owning was better for building wealth. What’s more, 70 percent said home ownership was also better for their overall tax situation.

Many delinquent borrowers say they’ve been unsuccessful at refinancing and lowering their monthly mortgage payments. The most common barriers cited are not qualifying and not trusting lending institutions, the survey found.

The survey also found that delinquent borrowers share stronger concerns about their finances, income level, debt stress, and employment than the general public.

Source: Fannie Mae and “A nation of renters? Not so, delinquent borrowers say,” HousingWire (Oct. 31, 2013)