Survey finds 70% of homeowners receiving mortgage assistance did not need it

The rush on offering monetary help to homeowners struggling with mortgage payments during the COVID-19 pandemic might have included more than a few cases of misplaced generosity, according to a national study released by LendingTree.

In a poll of 1,305 homeowners conducted between April 28 and May 1, 70% of respondents who received mortgage forbearance admitted they could”™ve made their payments but “just wanted a break from their normal payments.”

In comparison, 26.2% of respondents said they could have made their payments, but would have been unable to pay other essential bills. Only 5% stated they wouldn”™t have been able to make their mortgage payment without this assistance.

LendingTree also found only 25% of homeowners surveyed applied for assistance due to a financial hardship exacerbated by the pandemic. Of those homeowners, 80% were approved for a forbearance ”“ but 72% of those who received it claimed they felt “at least a little guilty” about receiving the assistance.

Among demographics, men were more likely to apply for pandemic-related forbearance than women (37.8% to 10.2%) and were more likely to be approved (81% to 75%). Roughly 36% of millennials and 35.1% of Gen Xers applied for forbearance, compared with a mere 3.5% of baby boomers ”“ and approval was granted to 76% of millennials, 87.6% of Gen Xers and 76.9% of baby boomers.