Losing Homes to Foreclosure: A Price to Pay for Health?

Due to the burden of mortgages on homes, a lot of Americans are left with the choice of setting their health aside just so they keep their homes from being foreclosed. The weakening economy does not help in the situation a lot with the increasing number of individuals losing their jobs, also losing their health insurance.

Despite programs that help people who need medical care and are challenged — having low income, senior citizens and disabled; a lot of people are still at risk of losing their homes to foreclosure. Medicaid and Medicare, two government programs that provide health insurance, may still be insufficient for continuous compliance of a patient to his costs, be it in drug or surgery.

According to Freddie Mac, one of the mortgage giants of the government, one of the reasons for failure of a homeowner to pay for their mortgages is illness. Almost 15 percent of delinquencies during the first half of the year are accounted for poor health condition of homeowner, aside from loss or lack of income. Another reason is having other debts like medical bills; electric bills etc., other than the house mortgage.

How does health care cost end up becoming housing problems?

Lack of income or job makes a person ineligible to health benefits a company may provide. For people who have health complications and needing constant medical care, even surgery and/or therapy and have no other means for paying for medical bills, they carry it on their house mortgages. And if the mortgage fails to meet the bills, they end up losing their homes to foreclosures.

This is why some people have considered putting off their medical care than ending up with foreclosure homes, leaving them homeless.

This is why consumer advocates does not encourage people to use their homes as collateral to their medical bills? As compared to banks, hospitals are more forgiving when it comes to debts, even setting low payments. Besides, with sufficient documentation of medical bills, a patient may be able to make loan modifications with lenders, preventing foreclosures.