Survey Finds Low Awareness of Servicing Options

Most delinquent borrowers in a recent survey said they didn't respond to servicers' phone calls because they were unaware that their late payments can be rescheduled to help overcome short-term financial difficulties, according to Freddie Mac.The survey, commissioned by Freddie Mac and conducted by Roper Public Affairs, found that 75% of respondents remembered that a servicer called. However, 28% didn't respond because they didn't think it would help them, 17% thought they could manage on their own, and 7% said they didn't have the money to make a payment, Freddie Mac reported. Delinquent borrowers also cited fear, embarrassment, and not knowing whom to call. In addition, 61% of the borrowers were not aware that workout options, such as forbearance and loan modifications, are available if they contact their servicer. The data show that there is a "knowledge gap," Roper vice president Elizabeth Armet said. "People's interest in options available is quite high, but their awareness of these options is quite low." Freddie Mac can be found online at http://www.freddiemac.com.