SILVER SPRING, Md. - A “Reality Check” related to mortgages is proving to be just that.
The National Foundation for Credit Counseling (NFCC) is reporting troubling findings from an online diagnostic tool it calls “Mortgage Reality Check” available at on www.HousingHelpNow.org. The tool allows consumers to answer a dozen questions and immediately be slotted into the appropriate risk category for foreclosure.
Since its launch in October 2007, more than 4,000 consumers have taken the test. Analysis of the most recent 30-day snapshot reveals that consumers are experiencing an increased financial stress related to foreclosure in every category. Among the trends:
* 78% of the respondents said they had trouble sleeping because of worry about their current financial situation, the possibility of losing their home or car, or their ability to use credit. This is an increase of 16% over the November and December 2007 findings.
* 69% of consumers taking the poll said they do not believe that refinancing their home will resolve their financial dilemma. This is an increase of 8%.
* More than half of the respondents, 59%, owe more on their home than it is worth, up by 11%.
* The category reflecting how many people had skipped paying some bills in order to pay others grew by 10%.
“The most disturbing trend noted was in the increase of the number of homeowners slotted into the red category, distinguishing them as those who most need immediate assistance to save their home,” said the NFCC. “This category grew by 12% in just one month, reflecting that 83%of those taking the test fell into this most at-risk group.”
For info: www.nfcc.org.
