Medical Collections Cause Housing Headaches

Among the lower-income adults with medical debt surveyed by the Access Project, 27% claim to have housing problems resulting from medical debt. These problems include being unable to qualify for a mortgage, unable to make rent or mortgage payments, unable to rent a home, or being forced to move to cheaper housing. Some claim to have been evicted or are now homeless, due to medical debt.

A report from the Commonwealth Fund finds an estimated 77 million people have had problems paying their medical bills within the past 12 months. The Access Project survey of nearly 1,700 low- and moderate-income Americans shows that 46 percent have medical debt that poses a significant barrier to economic advancement -- with specific regard to housing security.

Even modest amounts of medical debt (less than $500) can pose a grave hardship to many. 16% of the respondents in the survey claimed that medical debt had damaged their credit.  Although the actual figure is likely to be far higher than 16%, since few people closely monitor their credit profiles.

People with medical debt are often pressured into paying off their medical debt using their credit cards.  That is an exceptionally poor choice.  They merely exchange short-term medical debt for high-interest long-term credit card debt.  There will be a double-whammy after January 2006, since minimum credit card payments will be increasing sharply, making it much more difficult to make the new minimum payments!

The Specialty Lending Division offers financially sound solutions for borrowers facing such medical hardships.  Many of these borrowers are unable to qualify for loans through their bank or credit union because of low credit scores caused by medical collections, high credit card balances, missed payments, or a combination thereof.

• Get cash out of your home to pay off medical debt and to help rebuild your credit

• Consolidate credit card debt accumulated due in part to medical debts

• Some medical collections may remain open, when they do not affect title

• Even people with badly damaged credit can purchase their first home

The Specialty Lending Division can provide debt consolidation programs to 100% Loan-To-Value, with median credit scores as low as 580.  They also provide 100% financing to purchase a home, without having to pay off all medical collections.

If you have significant equity in your home, the Specialty Lending Division  has programs that will enable borrowers with credit scores below 500 to qualify for loans -- as high as 75% Loan-To-Value.  They never abandon you.  They patiently work with you -- for months, if necessary -- in order to improve your credit scores before submitting your loan for approval.  This will help save countless thousands of dollars in additional long-term interest expense.

Medical debt is not going to vanish by itself.  Contact the Specialty Lending Division at your earliest convenience for fast, fast, fast headache relief.