Mortgage ideas

[longview]

I saw this story,
Mortgages won’t be available in some areas, Fed chair warns
It is about insurance companies not writing policies in some areas, and how that will impact a person getting a mortgage.
My area is an area that most carriers will not renew policies, or only at an extraordinary price.
I was able to get a policy at a reasonable price by agreeing to a 3% deductible, and knowing that I have the funds set aside for that.
I was thinking that people wanting to sell their homes, rather than reducing the price until someone with cash will buy the home,
Perhaps they could set up an escrow account where ~3% of the mortgaged sale price goes into an escrow account to just cover
a high deductible. In this way the buyer could still get a reasonably priced insurance policy, and the mortgage company is assured that the
homeowner can meet the higher deductible. This is NOT my area of expertise, but I was thinking something like this could get
the housing market moving in places where it is not doing much currently because buyers cannot get insurance policies.
Thoughts, ideas?

 

[Ahlevah]

Next time put “Trump” in your title, talk about how Trump is going to get everyone who wants one a cheap mortgage, and you’ll get a better response. Works wonders.

 

[Ahlevah]

But to answer your question, my wife and I have had to face this issue personally, and there are no easy answers. We live in an area with considerable storm risk and currently carry a 5% hurricane deductible. Additionally, we carry a federal flood policy. We’ve also taken measures to the tune of tens of thousands of dollars to mitigate potential storm damage by strengthening the home, which permitted us to receive discounts on premiums. But I think a basic truth is living in high-risk areas means a higher cost for housing. No ifs, ands, or buts about it. The only way to avoid it would be to move.