There appears to be a communication issue with some of the struggling US owners.

According to a new report, about 400,000 US homeowners have become “unnecessarily late” on their mortgages, despite being eligible for a no-payment forbearance plan.

Under the CARES Act, homeowners with a federally guaranteed mortgage can suspend their monthly payments if they face financial hardship. This relief can last up to 360 days from the date of the request.

Data from the Mortgage Bankers Association shows that most distressed homeowners accepted his offer by the government. As of this week, about 6.81% of all mortgage borrowers, or about 3.4 million households, are on a forbearance plan.

About 400,000, however? They are at least a month behind on payments and could face foreclosure.

Michael Neal and Laurie Goodman, researchers for the Urban Institute, say it’s probably misconceptions about abstention – or perhaps a lack of awareness that abstention exists.

“These borrowers may or may not know they are eligible for forbearance, but mistakenly worry about having to make double payments at the end of the forbearance period,” the researchers wrote.

This latest statement was a common concern at the start of the pandemic. Many homeowners were concerned that the suspension of payments would mean exorbitant payments or a huge lump sum due later.

While lump sum refunds are an option, they are not required in most cases.

“Forbearance repayment options vary depending on the type of mortgage,” says Michael Sema, founder of Get a Rate Mortgage Market. “Homeowners can make a lump sum payment at the end of the plan, pay off the amount owed over a period of time by adding the balance to the balance and the total mortgage payment, or continue to pay the same mortgage payment by extending the term of the loan.” mortgage. . “

According to the Institute’s analysis, an awareness campaign alerting struggling homeowners to these options is essential, at least if they wish to keep their homes. In many cases, a lender can begin the foreclosure process after only a few missed payments.