Has the "Mortgage Gap" Cracked the Foundation of Home Ownership?

BLOOMINGTON, Ill., Sept. 20, 2011 /PRNewswire/ -- According to a new COUNTRY Financial survey, there is a gap in Americans' ability to pay their mortgage if they became unemployed. Two out of three homeowners (68 percent) claim if they lost their job, they wouldn't be able to make mortgage payments after nine months. That period is shorter than the current average unemployment length of nearly 10 months*.

This "mortgage gap" is more pronounced for some. Nearly one-third (31 percent) say they would be able to maintain payments for just three to six months. One-quarter (27 percent) would only be able to pay for less than three months. This divide might be why more than half of homeowners now question whether buying a house is the best investment a family can make (59 percent).

"The housing market decline and high unemployment has put a strain on everyone. Although there's no quick fix, having a financial safety net can help. If possible, start an emergency fund to offset those unexpected life changes like unemployment," says Keith Brannan, vice president of financial security planning. "If you're concerned about your mortgage, seeking professional advice to reprioritize your income can help you protect your current possessions and budget for future expenses."

Despite Loss in Value, Homes Still Vital to Retirement Plans

A majority of Americans (54 percent) say their home lost at least 10 percent of its value during the housing market decline.

Despite this loss, many peoples' retirement still hinges on the investment made in their home.

• Sixty-eight percent say their home's value is very or somewhat important to their retirement plan.
• Eighteen to 29-year-olds (83 percent) were most likely to stress this importance. They were at least 11 points higher than other age groups.

Americans Focused on Protecting their Investment

In the last year, 63 percent of homeowners reviewed their home insurance coverage. Another 19 percent reviewed their coverage in the last two years.

"It's encouraging to see Americans are taking the time to inspect their homeowners insurance," adds Brannan. "Ensuring you have the right protection for your home is essential, especially for those whose home's value is important to their retirement."

*According to the U.S. Bureau of Labor Statistics

To access video interviews about the latest COUNTRY Index data please visit www.countryfinancialsecurityindex.com.

The COUNTRY survey on home ownership is based on a national telephone survey of 2,264 homeowners and is compiled by Rasmussen Reports, LLC (www.rasmussenreports.com), an independent research firm. The question as to whether owning a home was the best investment a family could make was asked of 3,000 adults. The margin of sampling error for that question is also approximately +/- 2 percentage points with a 95 percent level of confidence.

About COUNTRY

COUNTRY Financial (http://www.countryfinancial.com) serves about one million households and businesses throughout the United States. It offers a full range of financial products and services from auto, home and life insurance to retirement planning services, investment management and annuities.

SOURCE COUNTRY Financial

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