Harris Interactive, one of the leading names in market research industry, have recently undertaken a poll on timings of mortgage payments, the results of which are frightening and leaves profound consequences on the lending market. The number shows that around 22% of homeowners are finding it extremely hard to pay off their mortgages in a timely fashion, while nearly 7% of the lenders are found to be capable of discharging their loans within the stated period, that too with an extra effort on their part.
The research by Harris Interactive further reveals that around 21% of householders are completely unaware of the status of their mortgages regarding underwater category; a financial term that best describes under valued collaterals not being able to cover their indebted sum of loan. With a shrinking economy and a shrinking middle class who forms the majority of lenders, it is apparent why the number is increasing so fast in terms of households categorized under the underwater category.
Another important fact highlighted by the poll is the noticeable downslide in mortgages. Comparing the year 2010 to 2011, adult mortgages declined from 69% to 66%, a certain 3% reduction in percentage within the span of a single year signified couple of substantial facts. One is that despite the prices of real estate not in its majestic boom, prospective homeowners are rather reluctant to buy a house. The second and more apparent fact is since people are toiling to get off their debt, they are not encouraged to invest in new homes.
Amidst such berserk prospects, lenders can breathe a sigh of relief considering the fact that there was a downfall in number of individuals who were going through acute difficulty settling their mortgage installments in 2011, compared to the figures in 2010. However, Harris Interactive have their share of doubts over this substantial progress and have instead credited foreclosure behind such impressive stats.
Still, if the numbers above are considered fair, it cannot be asserted as a normal recovery if compared with industry standards. Harris Interactive compared these numbers with the collected data from another study and came to a conclusion that the growth is undoubtedly slow.
All the above facts were collected from an extensive research conducted on March, 2011. The research lasted for a week involving 3171 adults who were interviewed on the subject of mortgage payments. Since all the participants took part in the research at their own will, no provision was made for any possible sampling errors. The poll was conducted with an objective and impartial approach, which made the results unerringly definite.