What Home Owners Need To Understand About Hidden Risks!
One Of The Greatest Risks That Home Owners Face Is the Unexpected Loss Of A Breadwinner's Income!
Thanks For Reader's Fee Back -
Having posted my previous blog titled "Real Estate - An Important Asset Worth Protecting" I was pleased to receive responses and surprised at some information they provided and the pain they shared! Several responses requested that I inform others about the risks and help provide them with solutions!The common thread in their responses was how many individuals - and their families - had experienced the loss or near loss of their home and equity due to extended disability and or the death of a breadwinner! These events triggered #foreclosures due to an inability to pay the mortgage and related home expenses based on the loss of income.
Many of these folks paid for mortgage insurance but these policies only paid the bank - not the individual. They did not know that their were newer plans - now referred to as Mortgage Protection Insurance(MPI) - that would have paid them and their families.
Equally, they did not know that there are affordable, simplified issue disability plans to replace lost income in the event of sickness or injury!
These responses to my blog triggered my realizing how little I - and probably most other people - know about the #Process OfForeclosure and the common causes! I did some basic research - Here's what I uncovered.
What is Home Loan Foreclosure? According to Fannie Mae, "A foreclosure is the legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan."
What are the Common Causes of Foreclosure? According to Citywide Home Loans, There are several
My question was - Which of the above Five D's is can be immediately addressed to provide a safety net?
I was quickly able to isolate two of the D's for which there are realistic, proven, reliable, and affordable solutions. Take a look:
I was quickly able to isolate two of the D's for which there are realistic, proven, reliable, and affordable solutions. Take a look:
Suggested Solutions For:
1) Death - Citywide points out that - "A death in the family is a leading cause of foreclosure, particularly when it happens to be the head and primary breadwinner of the household who passes."
Solution - While the passing of a family member is a tragic and painful reality, there is a solution that homeowners /breadwinners can utilize while still living to limit the potential financial impact o their families.
Planning ahead can replace the loss of income and help pay their family's mortgage payments and related household expenses.
The home owners/breadwinners can purchase Mortgage
Protection Insurance(MPI) - a refined and more encompassing coverage that requires no blood test or physical and is considered simplified issue!
Note - While many people have life insurance, this coverage was purchased and earmarked to provide the beneficiaries funding for specific uses. These include: paying taxes, children's education, ongoing expenses, and leaving a legacy.
In most cases the cost of paying the ongoing mortgage and related expenses was not part of the formula.
For more information about #MortgageProtection read my previous Blog or Text/Call Maxine - 216.377.9310.
2) Disease [and Disability] - Citywide further points out that - "Disease: Unexpected medical bills are the leading cause of bankruptcy in the U.S., so it makes sense that they would lead to foreclosure as well. Chronic illness, catastrophic emergency, and inadequate health insurance can all create financial stress that ultimately means missing mortgage payments."
Solution - While the occurrence of Disease [Catastrophic Disability Events] are Unexpected, you can protect yourself - and your family - from the potential devastating results. You need to take action before it is to late! Homeowners/Breadwinners can purchase Mortgage Protection Insurance with Accelerated - Living - Benefits.
This is a new, refined and more encompassing coverage that requires no blood test or physical and is considered simplified issue!
Quite simply - #AcceleratedBenefits allow you access a portion of your coverage’s death benefit while you’re still living.
Typically, you must be diagnosed with a chronic or terminal illness or a longer term health event to claim this benefit. You and your family can then use the funds to cover mortgage and related expenses while you recover!
For more information about Mortgage and Equity Protection read my previous Blog or Text/Call Maxine - 216.377.9310.
Important Note - While some people have disability coverage through their employer, there is generally a long elimination/waiting period and filing a claim can be difficult.
There are now simplified issue disability plans with short waiting/elimination periods where you can select the monthly amount and the duration - how many months the policy will pay! These policies provide Peace-of-Mind!
3) Denial [and Procrastination] - Citywide describes denial as - "...denial. A variety of factors can come together to put a person in financial stress, and denial can keep that person from recognizing that their current lifestyle is not compatible with keeping up with mortgage payments."
Solution -
Take action now to protect your and your family's lifestyle! Don't let Denial and Procrastination put you at risk!
I'm was as guilty as most people. I firmly believed that 
those terrible events only happened to others or later in life!
I was wrong!
My Experience - In my twenties I was the victim of a hit-and-run car accident that: broke my legs, caused pulmonary embolisms, put me in a coma, and left me flat broke. Everyone in my family suffered - I was lucky that they all could kick in to help! It took years to repay them!!
In my sixties I was diagnosed with prostate cancer! The treatments required months an my total focus. My income came to an end for over six months!
Fortunately, I am now cancer free. I wish I had been told about and had purchased Disability and/or Mortgage Protection Insurance with Accelerated Benefits!
Now Is The Time To Gain Peace-of-Mind For You And You Family!
I hope I have provided you enough information for you to:
1) Want to learn more
2) Better Understand the Coverage
3) See If You Qualify
4) Discuss Your Flexible Choices To Meet Your and Your Family's Needs and
5) Find Out the Affordable Cost To Meet Your Budget!
Here's What You Can Do -
Talk to a specialist - Get free advice and find out more so you can Make an Informed and Empowered Decision.
Where to go for the information -- Maxine Collin - with over 30 years as a disability plan advisor - will explain the Pros & Cons:
Maxine will briefly explain -- How these plans protect what is many people's largest investment and debt - Their Home!. While the mortgage makes it possible for most people to buy a home, it also creates the one of the greatest financial risks.
When the new Mortgage Protection Plans became available, she recognized the need and the peace-of-mind provided! Combined with disability coverage a security blanket was created!
You can schedule an appointment with Maxine for more information - With No Sales Pitch!
What About The Cost - Maxine told me that while the cost of the coverage varies based on age, the amount of protection you need etc., the plans flexibility makes it affordable for most people.
Once she understands your situation, she'll provide you with no obligation quotes.
Maxine's Contact Information -
Text/Call - 216.377.9310
Email - max@vestabp.com
Have a Healthy and Prosperous Year!
