Underwater Borrowers: A Chance to Breathe Again?

OriginationNews tells MHProNews that after a two-year study, a Columbus, Ohio-based insurance company has introduced the Home Value Protection(HVP) plan to offer a modicum of protection to homeowners interested in refinancing or taking on a new mortgage. In light of the negative equity many homeowners face, Home Value Insurance Co. offers insurance against home devaluation due to local market conditions. With monthly premiums usually less than $50, homeowners can recoup the difference between the value of the home at the time the insurance is purchased and the amount for which the house is sold. Available for primary, owner-occupied single-family homes and condominiums, the program has been approved by the Ohio Department of Insurance. The policy will cover losses up to 25 percent of the home’s value, but with a ten percent deductible if the house is sold after the first year of coverage and five percent deductible if sold after the second year. The initiative fits nicely with the Home Affordable Refinance Program to allow homeowners to take advantage of low interest rates.
(Photo/graphic credit: Bankrate)

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