This couple on my teevee.. are having their home foreclosed on. They're both real-estate agents.. self employed. They have a small child and their medical insurance premium is $1000 a month for the three of them. Their income is down substantially due to the down turn in the real-estate market.
So.. what to make of that? What's the problem?
Health insurance premiums.. they are crippling our economy. If this couple did not have that horrendous expense, they'd be able to take side jobs to get by and pay their mortgage while hoping and praying the real-estate market turns around. Sure, it would be a tough go, but they'd have a good chance to hang on to what they've built.
Do they "deserve" to keep their home? Sadly, no. It makes no difference what the reason is that somebody cannot pay their mortgage. They are not "losers". They are not intentionally avoiding their responsibilities. It's just life.
The foreclosure process takes quite a while. They knew it was coming, how long it would take.. and had opportunities for one of them to find a job with health insurance benefits for the family. Does it suck? You bet, and I feel bad for a young couple that is facing that situation.. but face facts, they'll take a big credit rating hit.. will have to find another place to live, either an apartment or with family.. but they can get back on track. They have the benefit of youth going for them.
The current Obama plan for addressing this situation will not help that family. They simply do not have the money to pay their mortgage. A principle write-down won't make any difference when you simply do not have the income.
And one thing I haven't seen mentioned all that often is the recidivism rate of foreclosures that were re-negotiated. Even after having the terms of the mortgage adjusted.. as some lenders have been doing already.. the foreclosure rate is well over 50% within 6 months. The economy is not in an upswing where those numbers will decline. It's only going to get worse.
People need to be pro-active in managing their situation, and not simply sit around and wait for the constable to show up at their door to put their stuff out on the street.
4 comments:
$1000 Per month is just obscene.
http://www.nib.com.au/home/newtonib/products/Pages/Forallofyou.aspx
First Health Insurer I could think of (they run the most TV ads, guess advertising works sometimes lol). Theyre most comprehensive plan comes in at just over $200 a month for a family.
And thats $200 AUD which is what $120ish US?
And people in the US think we have the most awesomest health care in the world.
Kor beat me to the punch.. But that's fucked.
I am actually a member of NIB, and I pay $60 a month for full hospital cover plus dental, optical, chiropractors, accupuncture, physiotherapy, even massages.
The only teir higher includes heart surgery in a private hospital and joint replacement. But I thought I'd save a few bucks there.
But then get this - at tax time I don't pay the medicare surcharge (1.5% of your income for people earning over 50k gross) because the government rewards people who look out for their own health.
So when you consider that surcharge I'd pay if not insured, I pay about $150 net cost to myself a year. It's even better than Kor made it out to be.
I know i am paying for my health care via taxes. But I have NEVER seen any bill related to medical needs.
Out of sight out of mind.
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