Better to rent? Delinquent borrowers still want to own
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 showed. The survey found that the majority still believe in the financial and lifestyle benefits of home ownership.
Delinquent borrowers were asked if renting or home ownership was better for building wealth. Seventy-four percent said owning was better for building wealth. Approximately 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.