Avoid Christian Property Repossession
Finding ways to avoid Christian property repossession can be a major priority for anyone who has struggled to make mortgage payments on their home. As more and more families face this heartbreaking financial dilemma, finding a real solution to what seems like an impossible situation can make a big difference in the lives of many consumers. Circumstances will vary, but there may be steps that can be taken to prevent loosing a home to foreclosure. The problem will begin when a borrower has been unable to make the payments on their home or property. Most lenders will allow a certain amount of time to serve as a grace period, and some will try to work with a debtor to find a workable solution. But once the grace period has passed, there may be not other option available to the lender. Foreclosure on a property means that the lender who has financed the original real estate purchase is convinced that the debtor will not be able to pay the loan back. Since the home itself has served as collateral for the mortgage, the lender has every right to seize the property and attempt to sell it to recover the debt. By this point, many borrowers feel that there is no way to avoid property repossession. As long as the house has not sold to another buyer, there may still be options that can be taken.
Obviously, the best way to avoid property repossession is to make timely mortgage payments each month. Often homeowners will wonder how many payments they can miss before a lending institution will begin foreclosure proceedings. The truth is that attempts to repossess a home can begin much sooner than the borrower might think. If a debtor has missed two house payments, a lender may start action to repossess the home. A borrower might want to contact the lender in advance to let them know that making payments will be difficult that month. When this is the case, the borrower and the lender may be able to find a solution. However, there may be nothing that a lender can do. A home mortgage is a contract between the lender and the borrower. The borrower has promised to pay back the loan via regular monthly payments. Failing to honor this contract, regardless of the reason, can, and frequently does, mean that a borrower will loose their property. Before proceedings begin, a lender's legal representation will usually send a letter to the borrower demanding payment of the amount of money that is owed. If a borrower does not respond to the demand in the form of some kind of payment, a second letter will be sent. This letter is known formally as a Notice of Intended Prosecution. At this point, the courts become involved. While trying to avoid property repossession is certainly understandable, ignoring these letters is never a good idea.
A borrower's attendance at any court proceedings involving the foreclosure of a home is very important. It might be possible to avoid property repossession by working out some kind of deal between the court and the lender. Of course, a borrower will need to make an offer of resuming monthly payments and also to make some kind of gesture toward catching up on missed payments. A judge may rule in a debtor's favor and give the borrower another chance. If this is the case, a Suspended Order for Possession will be granted. At this point, there may be additional options to that of resuming payments and catching up on the money that is owed. A borrower may also be able to negotiate a new mortgage, particularly if there is equity in the home. A homeowner could also sell their home to pay back the debt. However, finding a buyer in time to avoid property repossession may be difficult. Another option is to catch up on all payments before the case goes to court. In this event, the judge may decide that the lender does not have a sufficient case against the borrower. And if the borrower has located a buyer and shows that they will soon be able to pay the loan off in full through the sale of the home, a lender will most likely not be able to take possession.
Some families may not be aware that they could be eligible for a type of government assistance that can help them avoid property repossession. FHA Secure is a refinancing option that is administered by the FHA. There are specific criteria that must be met to qualify for this refinancing program. The loan must date back before January 1, 2008. A borrower must also have a debt to income ratio of thirty one percent or greater and must be able to demonstrate that they are no longer able to afford to make payments on the loan. The home owner can also not be the owner of more than one home and must not have missed any house payments intentionally.
These new loans are geared toward slowing down the foreclosure trend and helping borrowers avoid property repossession. Terms for these mortgages are relatively simple. They are generally thirty year mortgages that have a fixed income rate. There are no prepayment penalties should a borrower decide to pay the loan off ahead of time. Any liens that previously existed against the home will be extinguished. With hard work and diligence, a struggling homeowner can often find solutions. The Bible frequently extols the virtues of hard work. "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase." (Proverbs 13:11)
Christian Income Protection InsuranceIncome protection insurance helps the policyholder who becomes incapacitated and is unable to work. This may happen due to a serious illness or an accident. Each policy may be different on what is considered incapacitated and will have limits on what it will pay. Income protection insurance usually contains a deferred period and a proportionate benefit. A deferred period delays the onset of benefits and a proportionate benefit will pay the insured a reduced benefit if he or she will agree to work part-time or take a lower paying job. Benefit limits are often around 60% to 70% of the policyholder's gross earnings. The policy may include a waiver of premium during the period that the policyholder is incapacitated but some policies are dependent upon the premiums being made each month even when the policyholder can not hold down a job. The benefits are not usually considered taxable income unless they are paid through an employer.
People who are past retirement age will probably not be able to qualify for income protection insurance. Policies cover adults who are still working at the time of an illness or accident that has caused them to become unemployed. After a person retires it makes sense to have life insurance and retirement benefits. Disability insurance is more important for the person who has a family and a home to pay the mortgage on. Some companies offer some disability coverage to employees but oftentimes it is not enough to cover what is needed. Of course that would depend upon the extent of the disability or incapacitation.
Common factors that may affect the premium for income protection insurance include age, occupation, earned income, health status and history, employment status, and if the policyholder is a smoker or non-smoker. Some insurers will want to know how much alcohol a potential policyholder drinks before they will cover him or her. Many insurance companies expect the person who is disabled to see a doctor and obtain written confirmation that he or she is unable to work and even then the premium will probably still have to be paid for coverage to continue. Becoming disabled can be a very troubling experience but having coverage to help during this time can provide some solace and God will lead through praise and prayer. "Cause me to hear Thy lovingkindness in the morning; for in Thee do I trust: cause me to know the way wherein I should walk; for I lift up my soul unto Thee" (Psalm 143:8).
When choosing a policy a person should look carefully at how the policy defines incapacitated or disabled. Finding coverage that will pay regardless of occupation is important. Some policies for income protection insurance have limitations and different definitions of restrictive disability. A good plan will cover even partial disability. Oftentimes a person will choose coverage based upon the most reasonable price. This is not a good practice when choosing disability coverage because there could be a big difference in the terms and limitations between different plans. The length of the benefits is a big thing to consider. Having coverage that only lasts for a couple of months and sometimes even up to a year may not be enough. A really good policy will continue providing benefits until a person is retirement age.
Some plans include trying to help the policyholder become rehabilitated. They often do this so that they will not have to continue paying benefits indefinitely. Income protection insurance may pay for the insured to have a rehabilitation counselor. A rehabilitation counselor can help the insured determine what options there are with vocations and if an education will be necessary to be able to become employed in the vocation of choice. Counselors that work for insurance companies may try to get the insured person to commit to become rehabilitated with the least amount of assistance or education because it keeps their cost down. This is one reason why a person should understand what the policy says before purchasing it. Some plans may state that once the insured is rehabilitated according to the insurance company's guidelines that benefits will stop.
Residual disability is an important feature when choosing income protection insurance because having it will provide a percentage of income loss after the insured returns to work even if he or she is making less than before the disability happened. A policyholder should check for the terms associated with this type of plan because there may be limitations even with residual policies. The benefits should continue until the person is able to make 75% or more of his or her previous income. In addition, make sure that the insurer can not cancel a person's coverage as long as he or she is paying premiums for that coverage.
Finding a policy that is non-cancelable and guaranteed renewable is the best type of coverage to have. Guaranteed renewable keeps the company from denying the Christian policyholder renewable coverage for any reason or from changing the terms and benefits of the policy. Non-cancelable with income protection insurance means that the insurer can not change the policy just because the policyholder's circumstances change which makes him or her a higher risk. Nor can they add restrictions or limitations to the current policy. The coverage may have a guaranteed schedule of increases that is stated in the terms. Find out what the coverage says about premium increases and choose one that has a fixed premium.