Coronavirus Economy: More Than Half Of Borrowers Fear Not Being Able To Pay Mortgages, Auto Loans

More than half of borrowers fear they won’t be able to pay their mortgages or auto loans in the next three months, a report from Bankrate.com-YouGov indicated Wednesday. The survey also found 60% of those queried had yet to contact their lenders to work out a solution.

The poll queried 1,328 mortgage holders and 1,234 people with auto loans April 20-23.

“For households struggling financially due to the pandemic, payment relief is available, but you have to ask for it,” Bankrate.com chief financial analyst Greg McBride, said in a statement emailed to IBTimes.

The survey indicated 54% of those with mortgages and auto loans voiced concern about their ability to make payments, with only 40% having contacted lenders for help. Among those who have contacted lenders, nearly half said they had received payment relief.

Levels of concern were highest among millennials and those making less than $30,000 annually.

A report from data firm Black Knight indicated 3.8 million homeowners, representing 7.3% of all mortgage-holders, were in forbearance plans as of April 30, but requests have begun tapering off.

The coronavirus pandemic has seen layoffs skyrocket in the last six weeks, with more than 30 million Americans having filed initial unemployment claims as of last week. Experts predict the April unemployment rate will be around 16% when the figures are released Friday.

An online survey of 31,271 adults by the opinion platform Piplsay indicates 56% of U.S. families have suffered financially from the pandemic with 53% saying they either lost their incomes or taken a pay cut. The survey indicated 34% lost income, 30% were placed on furlough, 19% took pay cuts and 17% lost their jobs.

“My colleagues and I took a 50% pay cut last month. My biggest worry is that I may not even have this job if the situation does not improve soon,” a respondent identified only as Christian said.

Fifty-two percent have either applied for or have plans to apply for unemployment benefits.

Twenty-eight percent said they have managed to secure work despite stay-at-home orders and a virtual economic shutdown.