A recent DSnews report reviews how homeowners and potential homebuyers are faring during the ongoing COVID-19 pandemic. LendingTree conducted a survey at the end of June to determine how the health crisis is impacting financial situations and people’s ability to pay their mortgage loans. Roughly 1,000 Americans were surveyed. The data revealed that half of mortgage borrowers have lost income due to the pandemic, and nearly 20% have missed payments during the past few months. The report discovered that millennials are getting hit the hardest financially right now. Among millennials, 61% reported a loss of income, compared to 57% of Generation X and only 37% of baby boomers. 18% of borrowers have missed at least one payment. Most of these borrowed have entered a forbearance agreement, but 5% have not entered an agreement with their lender. Roughly 30% of borrowers across the nation have entered a forbearance agreement, while another 12% are in the process of applying for mortgage relief.


The DSnews report stated, “Two percent of survey respondents report being denied for a forbearance plan. LendingTree reported that 44% of those in forbearance plans have an annual household income of $100,000. At the same time, 7% of borrowers with an income of less than $25,000 say they were denied mortgage relief, which is higher than any other income bracket”. LendingTree concluded that some borrowers may have been reluctant to make a forbearance agreement because they were unsure of the terms. Of those surveyed, baby boomers were the most likely to be unsure of the terms. About 37% of baby boomers reported they were unclear on the terms, compared to 17% of both Gen Xers and millennials. Chief Economist at LendingTree, Tendayi Kapfidze, stated “ Unfortunately, the response to the coronavirus crisis has been very poor; many layoffs that were temporary are beginning to become permanent, and the economy is likely to remain weak well into 2021”.

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