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 Posted: Tue May 05, 2009 6:58 am Post subject: Home equity insurance - How it can help you against losses |
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Can I protect myself against the falling price of my home? I'm looking for home equity insurance coverage that would protect me against the depreciating home equity value and help me in avoiding foreclosure.
Thanks,
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Garson_toad_like
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| Posted: Tue May 05, 2009 7:54 am Post subject: |
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Hey Garson, I'm not sure if anything of that nature is available in the present market but have heard that there is a plan to introduce home equity insurance to safeguard the interests of both the lenders and the homeowners against the falling price of the property.
It's said that it would also help in stabilizing the real estate market.
Just hang tight someone with more information would soon be around.
~Jeremy |
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JeremyHolter
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| Posted: Tue May 05, 2009 9:25 am Post subject: |
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| Quote: | | Just hang tight someone with more information would soon be around. |
Yes, home equity insurance would cover you for the falling worth of your home.
The premium that you'd need to pay is just a one-time upfront payment. Suppose, if the housing price index drops in your neighborhood ever since you've paid this premium, then you'd be entitled to receive a percentage of the fall for this period.
It is also known as the home value protection.
Steven |
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steven
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| Posted: Tue May 05, 2009 10:23 am Post subject: |
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really. then we can reduce our losse if we insured our home under such terms of insureance.
but i guess the price of this insurance would not be cheaper since the presently market are really tough and few people willing and afford to buy new house now |
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tohawk
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| Posted: Tue May 05, 2009 10:43 am Post subject: |
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Hi,
With the current situation, how feasible would it be to pay an upfront amount for the home equity insurance or home value protection. Does anyone know of the options available to go for this particular plan?
GNP
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gnp
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| Posted: Tue May 05, 2009 12:48 pm Post subject: |
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| Appeas that these plans have "lock out" periods, a period of time where the contract holder cannot collect. Over a longer period of time homes seldom loose value. |
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tcope
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| Posted: Tue May 05, 2009 7:20 pm Post subject: |
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btw..... a small piece of info i can share here is abt foreclosure...
For foreclosure the best who can help u are ur mortgage co.. they will help u with a pay plan.. after looking at ur earnings and expenses.. When you are set up on a repay plan the co will automatically have your home insured.. which is called lender placed to protect their interest in the house as well
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gnp
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| Posted: Wed May 06, 2009 8:30 am Post subject: |
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Hi gnp,
Don't you think we need a federal home equity insurance?
I guess it's easier for all of us to protect our home from fire and flood.
But how do we resist losing the worth of home equity in a falling market?
A federal home equity insurance could be a solution to many of our problems. There would be a relationship between the insurance and the house price index on a locality basis. It would not be possible for you to sell the house at a lesser price on grounds that you failed to maintain it properly. Lenders would be protected for the first claim on policy payments.
Steven |
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steven
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| Posted: Wed May 06, 2009 10:22 am Post subject: Can I protect myself against the falling price of my home? |
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Hi
About protecting the equity of our home.. wel theres nothing much available that i am aware of.. one cannot insure the the market.. as the prices have come down and earning have reduced and the value has also come down.. i guess we cant have a home equity insurance to cover equity.. but ya you can get help from your mortgage co to get a repayment plan as mentioned by GNP which has helped a lot of owners to keep their house and avoid a foreclosure.. they will help you keep your home as they have interest in it as well and are at a loss if a house is foreclosed.. You can use the Obama home affordable plan which works for Freddie mac and Fennie Mae loans. |
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DJ
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| Posted: Wed May 06, 2009 10:24 am Post subject: |
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I agree with you Steven, awaiting some strong steps towards housing would be a great ray of hope..
because such a home equity insurance can boost more no. of buyers and thus boost the market up...
lets hope for the best.
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gnp
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| Posted: Wed May 06, 2009 2:31 pm Post subject: |
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Hi gnp,
| Quote: | | because such an insurance can boost more no. of buyers and thus boost the market up... |
Certainly!
The housing market holds a lot of scared buyers, price drops and foreclosures. Under normal conditions price-falls increase demand and lessens supply.
Don't you think the market is far from normal today?
Steven |
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steven
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| Posted: Wed May 06, 2009 2:38 pm Post subject: |
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Hi DJ..
You've hit a great point!
| Quote: | | one cannot insure the the market.. as the prices have come down and earning have reduced and the value has also come down.. |
I've always believed that insurance has the power to affect the whole market trend.
The presence of insurance creates more demand and this in turn lessens the probability of price-falls.
What do you think? Roddick |
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roddick
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| Posted: Fri May 08, 2009 5:18 am Post subject: |
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Hi Roddick..
as you said that insurance has the power to affect the whole market trend.
I do agree with you. however i am more of the view that if you have home equity insurance as support or a back up for unforseen uncertainties, then you could try to cover up some of the losses. but when a market itself is down and the prices have fallen how would you insure you equity its already take you down.
DJ |
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DJ
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| Posted: Fri May 08, 2009 8:16 am Post subject: |
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I agree DJ that in the falling market it'd be hard to get an insurer who would insure against the home equity. But i'm curious about the statement made by Jeremy in his post.
| Quote: | | It's said that it would also help in stabilizing the real estate market. |
What do you think DJ, this statement hold any worth?? |
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jeorge
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| Posted: Sat May 09, 2009 1:21 pm Post subject: |
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Hi DJ,
| Quote: | Hi Roddick..
as you said that insurance has the power to affect the whole market trend.
I do agree with you. |
Thanks a lot!
| Quote: | | but when a market itself is down and the prices have fallen how would you insure you equity its already take you down. |
See..price falls could be the outcome of a number of factors!
I am just of the opinion that the presence of insurance helps to reduce chances of price-falls to some extent. Of course as you said...once the market has slackened (like in the recent times), then we can't think of covering for our losses anymore..
Now, do you agree with me at that point?
Roddick |
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roddick
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