In today's challenging economic climate, many homeowners just like our client BB07042023 who is struggling to keep up with his mortgage payments. However, what adds insult to injury is when these payments unexpectedly skyrocket, leaving this client in a financial bind. This blog post aims to shed light on the unjust nature of sudden mortgage payment increases, the role of insurance, and the potential need to seek additional employment. Additionally, we will explore the repercussions of failing to meet these inflated payments and how they can negatively impact credit scores.
This insurance protects both the homeowner and the lender in case of damage or loss to the property. While insurance is essential, and most times a requirement , it can also contribute to payment increases. Insurance premiums can rise due to changes in local property values, increased risk factors, or even policy changes. This additional financial burden can be overwhelming for homeowners, especially when it comes unexpectedly as what is happening to our client.
Over the past 13 years ago. Our client bought a house and was paying only $1145 a month. His last payment was around $1549 and has gone up to $2200 a month because of the insurance company. The last time, he was paying the insurance was around $1500 and now it's a whopping $2239 a month. Meaning to say that This client's mortgage payment is increasing by more than $700 each month due to insurance! He can no longer afford this payment. He already works 60 hours a week while caring for his sick mother and does not have time to work a third job. Now, he's trying to help a family member, and currently owns three houses and wishes to sell 2 of them and just live in only one house together with his mother. However, his credit has now accumulated more late payments due to an unexpected increase in the amount of payment he must make, and he has no other options for insurance, only this one insurance company within Louisiana.
This can lead to increased stress, fatigue, and a compromised work-life balance. The burden of seeking additional employment should not solely rest on the shoulders of homeowners, highlighting the inherent unfairness of sudden payment increases.
We believe that it's unfair for our client to pay for another $700 a month and is limited to get another insurance company. On top of that our client's situation is put on hold with policy because of the hurricane season, where he was told they are not writing any policies until after hurricane season ends. Also, we advised our client to do his best to make a payment. In the next 24-48 hours we will work on establishing our client's credit. Provided additional information on how our process works and gets done.
In conclusion, these unexpected financial burdens, often influenced by insurance costs, can force individuals just like our client to seek additional employment to keep up. However, failing to meet these inflated payments can have severe consequences, such as negative impacts on credit scores. It is crucial for homeowners to be aware of these potential pitfalls and for the system to address the inherent unfairness in order to provide a more equitable housing finance environment.
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