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.
James A. Caspian