Selling a House to Payoff Medical Bills

home for sale with family

I Need to Payoff Medical Debt, Should I Sell?

There are instances when it will be difficult to settle your medical bills. Even individuals who have health insurance will sometimes find it hard to pay their medical debts. Due to the increasing rate of the medical bills, some Americans will have to resort to extreme measures just to settle their medical fees.

Medical bills are considered unsecured debts. This means that the medical institution will not have a control over your collateral for your debt coverage. Nonetheless, the hospital can file a claim that will force you to sell your property.

 

Selling Your House to Settle Your Medical Debts

Secured debts are the types of debts that come with collateral. Auto loan and mortgages are two perfect examples of secured debts. On the other hand, unsecured debts are not associated with collaterals. The creditor will not have the ability to seize ‘collateral’ without pursuing a case in court. The court will then decide if you should sell your property quickly to secure your medical bills.

 

Liquidating Assets

Are you considering selling your house to liquidate assets? There are instances when the court will put a medical lien on your property. This means that you will be forced to sell your property in order to cover the unpaid bills that you owe to the medical institution. Due to the increasing cost of medical expenses, the doctors will have to wait until you sell your house before they collect the unsecured debts. In case the amount of unsettled medical bills is less than the amount of your property, then the remaining money should be returned to you.

 

In some instances, the estate property will be insolvent. In the case of this medical lien, the bills, debts, and tax will exceed the market value of your property. This means that you won’t receive anything in return. You will be responsible for the debt and the remaining balance on your medical bills.

 

Selling Your Home

In case you decided to handle the liquidation of your asset or you just want to sell your real estate property to settle the medical bills, cash buyers would be the best choice. You will be able to skip the complex and time-consuming process of the selling your house in the traditional manner.

Especially in a slow market, it will help you save a lot of cash. You will no longer have to incur expenses for the marketing of your property. You are not also required to provide a commission to the realtor. In addition, you can sell your property on its existing condition which means that you will not need to acquire repair and renovation before you close the deal.

As soon as you contact an agency that will connect you with the cash buyers, you will be able to receive a cash offer immediately. Understand that the money that you will get in this process is slightly lower compared to the real market value of your property. An appointment will be scheduled to inspect your house. You do not have to submit complicated documents and paperwork to finalize the deal.

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