NFCC: Consumers Still Prioritize Mortgages Over Other Debt Obligations

Posted by Orb Staff on June 09, 2010 No Comments
Categories : Mortgage Servicing

erwhelming majority of consumers, even those in financial distress, still consider their mortgage payment a priority, concludes the National Foundation for Credit Counseling (NFCC) in its 2010 Financial Literacy Survey. When asked if they would they be more likely to keep their mortgage current or their credit cards current in the event they were unable to meet all of their financial obligations, 91% of respondents said they would pay their mortgage first. The survey also asked under what circumstances, if any, they would consider it justifiable to default on a mortgage. Only 23% of respondents answered that foreclosure is justifiable if the property is now worth less than what is owed on it. Further, 15% replied that there is no justifiable circumstance under which it would be acceptable to default on a mortgage. "Taken together, the NFCC survey data brings us some encouraging news: Consumers still place a priority on making their mortgage payment, less than one-fourth think that defaulting on a mortgage is justifiable simply because the property is underwater, and a significant number take mortgage obligations so seriously that they find no acceptable reason to default on a home loan," says Gail Cunningham, spokesperson for the NFCC. SOURCE: [link=http://www.nfcc.org/NewsRoom/newsreleases/files10/StrategicDefaults.pdf]National Foundation for Credit Counseling

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