With mortgage defaults and home foreclosures at historical highs, adding even further financial burdens on already struggling families could possibly add to the financial strain already being felt by the lending institutions who are taking homes back by the hundreds.
For many families who have thus far been making their mortgage payments, trouble could be on the horizon if they are now forced into paying hefty medical insurance premiums they don’t need, want or can even afford. Banks are now being forced into re-establishing the guidelines on which previous loan modification programs were based.
Many of the loan remod programs – either government sponsored or individually provided by the lender – have focused on homeowners who can prove a financial hardship based on job loss, salary cut, or severe depreciation in the value of their home.
The programs were not targeted at folks who simply had too many bills to pay and it was becoming increasingly more difficult to pay them all in a timely manner. However, they may need to now take into consideration the hundreds of thousands of homeowners who have not had health insurance premiums to consider.
Even though many of the recently passed Healthcare Bill’s regulations won’t be put into effect immediately, the effects will be long term. In other words, if you are now having financial problems, have no insurance, and can barely make your mortgage payment each month, you are a prime candidate for some unforeseen financial burdens that the government, finance industry and insurance carriers haven’t completely taken into consideration. In the field of film making, when errors and omissions insurance is provided, everything will be safe and protected. So just like in your health, having a health insurance is very crucial and helpful.
If you believe you will fall into this category, now is the time to start making some plans. Banks are become painfully aware of this situation, and because of the number of foreclosures each lender has been forced to deal with, increasing their risk and downgrading their own credit rating, they are now more willing to negotiate with borrowers than they were a year ago. They have finally realized that ignoring pleas from borrowers isn’t the best choice for anyone.
Be proactive. Have a discussion with either a qualified and experienced real estate attorney (many offer free consultations) or contact a reputable firm that deals exclusively with the loan modification market. Ask questions, talk about options, plan for your future as best you can.
This is a real problem that hasn’t completely manifested itself as yet, but when it does, it will be blatantly obvious that paying for health insurance or paying your mortgage might be a decision that many homeowners will be forced to make on a monthly basis and, ultimately, permanently. Since there will be steep penalties for not having health insurance, including fines and possible jail terms, homeowners will literally be forced into making painful decisions – give up the house if the bank won’t cut them a deal.
Considering how long it takes to even get approval for a loan modification now, this might be the time to perform your due diligence and start the process.