Medical bills are a statement of charges for medical services or the process for medical services. The medical bill lists your doctor’s services or you and the amount that service or services cost and hands it to you. There could also be instances where the doctor directly submits your medical bill, which could also be called a “claim” to your insurance company; the insurance company then uses the information in the medical bill or claim to pay your doctor for the service rendered as written in the claim.
HOW HAVE MEDICAL BILLS IMPACTED REAL ESTATE
- MEDICAL DEBT: When you rack up medical bills on credit, it sometimes gets challenging to pay, which leads to what is known as medical debt. Now medical debts show your credit rating, which sometimes then makes it hard to buy a property or get a mortgage of the sort because studies show that buyers with medical debt are more likely to be denied a mortgage.
- REDUCES CHANCES OF BUYING A HOUSE: Sometimes unpaid medical bills can sometimes inflate your debt to income ratio, which appears on your consumer report, and when it does, it goes ahead to affect your credit score, which plays a role in the process of trying to purchase a house or property as it reduces the chances of a successful sale.
- ASSET SALES: People with Medical bills are sometimes prone to selling assets when they need aid to pay up finance racked up from medical expenses; this prompts them to try and make a quick sale of personal assets and the likes to keep up with the treatment from the doctor. This can lead them to make unwise decisions as haste makes them take whatever they can get, which is improper in the real estate trade.
- PROPERTY SEIZURE: Some states have a policy in which a lienholder (someone with the right to take possession of a debtor’s property as security until a debt or duty is discarded) have consumer protections in place designed to halt such action, which is the seizure of property in cases of low income however in case of debt the beneficiary of the property will be transferred to the lienholder which in this case is the hospital.
- MEDICAL BILL REPAYMENT WITH ASSETS: There are times, albeit rare when a patient is, there is a sizeable potential disaster awaiting even though there are premium subsidies for those with low income under the affordable care act. When an uninsured patient racks up medical bills in large numbers, hospitals tend to collect repayment by seizing the said property or asset.
- FORECLOSURE and BANKRUPTCY: Foreclosure is a process or proceeding by a creditor (The hospital) to gain property or a specified collateral asset following a default on payments. According to an article in my 2021, many foreclosures and bankruptcy are caused by racked-up medical bills that the concerned fails to pay. This is a significant impact on the real estate business.
Racking up medical bills can be very detrimental and have a negative side effect on one’s credit rating. They might pose a fundamental threat in the process of buying property, and that’s why you need EZ Max Offer to help you get the best value off your property.