Many homeowners not asking for forbearance

According to a report by the Wall Street Journal, over a million homeowners who are at least 30 days past due on their mortgage payments have not entered into a mortgage forbearance program or asked their lender for assistance.

It’s estimated that approximately 680,000 of these homeowners have federally guaranteed mortgages form Fannie Mae or Freddie Mac which means they are eligible to enter into a forbearance program what would put their monthly payments on hold for a year without any penalties.

Analysts agree that many homeowners have not entered into a forbearance due primarily to confusion as to whether they’re qualified while up to 70 percent fear they will be required to repay the balance in one lump-sum at the end of the forbearance period.

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