Posted by Ronald * Starr(in No CA) on March 02, 2002 at 17:35:57:
James A. Caspian-------
Sounds reasonable to me. I would first suggest that you do research on the internet on the topic, then get into a university library and try to track down the journals that deal with insurance industry. See if there has been any research first. Then talk to insurance teachers at colleges and universities, they will probably help you out.
Good Investing and Good InvestigatingRon Starr********
Foreclosure Protection Idea - Posted by James
Posted by James on March 02, 2002 at 07:09:42:
What if real estate,lending,or insurance agencies offered an insurance policy to property owners providing foreclosure protection.Providing an emergency safety net to those who would otherwise lose their property. The insured would pay a monthly premium for this protection. It would be an immediate payout when needed by the insured directly to their lending institution.Paying out no more than 3 or 4 consecutive mortgage payments. Bringing their acccount balance current. There would be a great many more people having this policy that would never actually have need of it.The insurance could be considered as a prepaid loan. It seems to me a great deal of people would feel more secure and much safer with this type of coverage.
If they paid this type of insurance for the duration of their mortgage loan they should be reimbursed a percentage of equity upon completing their final mortgage payment. Having accrued a percentage of equity on their policy dependant upon the investment portfolio of their particular provider or by a set standard. Possibly providing a substantially higher percentage of equity as incentive for having never submitted a claim.
Seems to me that there is a lot of money out there that could be made as well as sparing lending institutions and property owners of foreclosure proceedings. This would seem to me to be an especially easy sell to homeowners. Most people have common sense to know and realize that some circumstances you can be caught off guard or unprepared. Employment layoffs, personal injuries or illness as examples. The very things that can lead to or precipitate an eventual foreclosure.
Unfortunately, I am not an insurance agent. I have no clue as how to finance or start an insurance company. I have no idea what the inner workings of an insurance company entail. Boy, do I wish I did. Comments or thoughts.
sincerely,
James A. Caspian
Re: Foreclosure Protection Idea - Posted by Bud Branstetter
Posted by Bud Branstetter on March 02, 2002 at 20:55:51:
Let see now, your payment is $1000/mo. You put 3K down and have PMI. Now the first year you would need to make an extra 3-4 payments so that that money is there to make payments the second year if you loose your job. Now you are not covered the first year until you make those payments. Then you have to convince me to pony up the same amount in case YOU don’t make your payments. I know I will but I don’t know about you. Why should I pay extra for you? It’s the same as car insurance. I get a good drivers rate as long as my company only insures other good drivers.
They have insurance protection like that on credit cards so that you payment is made if you get laid off. My son is working on his Master’s in statistics. It would be an interesting project to see how high a premium would be needed for the risk. I would first look at FHA mortgage insurance to find out how much they have lost and they only pay a portion to the lender. You could be right. There is disability insurance and may be the type you propose. Most people could probably not afford it.