ARE DOCTORS KEEPING PATIENTS FROM HOME OWNERSHIP?

By
Services for Real Estate Pros with William S. Cherry & No Co., Wealth Coach

Mortgage lenders, Realtors, and their clients, too, are learning the power that the medical profession has over credit scores.

Many doctors' groups, labs, hospitals and such expect their patients to instantaneously cough up whatever their medical insurance carrier doesn't.

When there is even the slightest delay, they turn the account - regardless of the size of the balance that's remaining - to a collection agency, and that occurrence is immediately reported to the credit agencies.

One wealthy U.S. congressman recently complained that he had learned for the first time that there was approximately $50 outstanding on a medical bill he had incurred some years before.  It had been reported by his physician to the credit bureaus and as a result, his credit score suffered a 100 point drop.

Several mortgage companies are trying to get federal legislation in place that will stop this foolishness.  Whether they'll be successful or not remains to be seen.

And whether the National Association of Realtors' lobbyists have weighed in on this problem, apparently hasn't been publicized.  If they haven't, I think they should.

What might be as appropriate would be for there to be federal fair billing regulations put into place that would require those in the medical profession to disclose the cost of treatment before they begin, and to know for certain that a patient plans to stiff them before they report him to the credit bureaus.

Nevertheless, many in the medical profession, whether knowingly or not, have caused a substantial number of their patients to have to wrestle with credit scores that prevent them from home ownership.

 

BILL CHERRY, REALTORS

DALLAS - PARK CITIES

Since 1964

214 503-8563

WEB

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Topic:
ActiveRain Community
Groups:
Advice for Buyers
Almost Anything Goes
Front Porch Majority
Texas Real Estate
The Ninety-ninth Percentile
Tags:
credit scores
mortgage applications
home ownership
physicians
medical groups

Comments 4 New Comment

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Rainmaker
156,031
Suzanne Gantner
GRI, E-Pro, SRES, SRS, ABR
Sky Realty, Central Texas Real Estate

I agree with you it is foolishness!!  Our health care costs are outrageous to begin with, our insurance is inadequate compared to the world's insurance coverage and doctors and hospitals are gouging people who don't have sufficient means to begin with.  If NAR isn't doing something about this, they need to be notified to get off their A$$$$$$.  As a Realtor who does 5 to 6 leases a year, 9 out of 10 of my renters would have good credit were it not for a Medical bill on their credit report.  Hence they have to rent and can't buy something...shameful!

June 25, 2011 09:38 AM
Rainmaker
318,916
BILL CHERRY
William S. Cherry & No Co., Wealth Coach
William S. Cherry & No Co., Wealth Coach

Thanks for your comments, Suzanne.  What is especially interesting to me is that most of the physicians' patients cough up substantial payments every month to assure that their physicians and hospital expenses will be paid.

How, then, does one justify calling one of those people a thief when, in reality, he has to make some adjustments in his finances to clear out the balance?

June 25, 2011 10:02 AM
Rainer
86,182
Wale Adewoyin
1st Crown Realty Corporation 972-268-9400

Bill we cannot blame the doctors. Like everything else(our profession included) the middlemen are to blame. The drs sold their souls to insurance co's.

June 25, 2011 10:54 AM
Rainmaker
543,589
Wayne Johnson
San Antonio REALTOR, San Antonio Homes For Sale
Coldwell Banker D'Ann Harper REALTORS®

Bill-Every one who provides a product or service wants to get paid. Its been my general experiece that doctors and dentists are not the bad guys when it comes to credit, collections, and sending accounts to collection agencies. But maybe I've just been lucky.

June 28, 2011 12:21 PM
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Rainmaker
318,916

BILL CHERRY

William S. Cherry & No Co., Wealth Coach
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