Just about the time you think everybody is up to speed on this real estate thing, there comes a report that takes you back to square one: Many Americans apparently don't understand that if you don't pay your bills, you can't buy a house -- and you can't buy a house if you don't pay your bills.

In a stunning report issued by Fannie Mae this week, "just two in five Americans understand that chronic failure to pay bills on time would be a major problem in qualifying for a mortgage, while half of all adults say such behavior would be a minor problem or no problem at all."

The surprising result emerged as part of a homebuyer survey to determine what factors first time homebuyers thought would be obstacles to their owning a home.

"At a time when every single previously cited obstacle to homeownership has receded to record low levels, failure to understand the relationship between paying bills on time and being able to qualify for a home mortgage has emerged as a new barrier to homeownership," said Fannie Mae.

Overall, the survey "shows a high degree of consumer confidence, and a high degree of consumer satisfaction with the mortgage process," said Fannie Mae CEO Franklin Raines. "But a shadow falling across the otherwise positive news is how many Americans don't fully comprehend the relationship between paying bills late, having bad credit, and experiencing difficulties in qualifying for a mortgage. This is a problem the mortgage industry needs to address."

A spokesman for Fannie Mae in Washington said the researchers were shocked at the findings.

"It was a complete surprise to us and we're at a loss to come up with an explanation," he said. "And it was across the board. The answers were about the same regarless of sex, education, income, race or any other characteristic."

The spokesman dismissed the idea that the real estate and mortgage communities had made it "too easy" to buy a home or even conveyed through marketing or seminars that anybody can buy a house these days regardless of credit record.

"I wouldn't go that far. I don't think we've sent that message out," he said. "But obviously there is some education that is lacking."

The survey found that all other perceived obstacles were in decline.

• In 1997, as many 47 percent of Americans considered the downpayment as their biggest obstacle to homeownership. The new survey shows that number has fallen to 25 percent.
• In 1997, 43.5 percent said they doubted they would be able to find a home they would like and could afford. In the current survey that figure has dropped to 23 percent.
• In the earlier survey, 48 percent of Americans said they were reluctant to buy a home because of job security. In the 1999 survey, only 13 percent said their jobs were not secure.
• Even discrimination is no longer considered a major factor. In last survey 18 percent of Americans named social barriers as a problem to homeownership, while in the current survey discrimination was named by only 6 percent.

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