Locals have trouble affording mortgages

MOBILE COUNTY, Ala. - Veteran Real Estate Broker Lydia Craft said there's a big problem south of Interstate ten in our area. The houses aren't selling, and it's not because people can't afford the mortgage.

It's the cost of homeowner's insurance. "There's a difference south of I-10, and north of I-10 40 to 50-percent difference in insurance," said Craft. Craft is a Remax Broker/Owner and tells all of her agents to check out the cost of insurance first before doing anything.

Crafts isn't the only realtor who noticed the difference. Shane Hale's seen it too. Shane is a professional realtor with ERA Platinum Properties. "Insurance is one of the biggest cost, because you do have to pay at the closing cost a 12 month premium, so it is important to check that out first, so you can save your clients time and they won't get too attached to the house," said Hale.

But, high homeowner's insurance isn't just dragging down sales. A house off Dauphin Island Parkway is up for sale because the owner can't afford the home insurance.

The owner has lived here for more than 20 years, and was recently dropped from her insurance, and the bank has forced insurance on her but it's too expensive on a fixed budget.

The resident said her company is dropping everyone south of I-10. So, the only way to avoid a bank foreclosure put her home on the market and hope it sells.

The Alabama Legislature passed a bill that would allow captive insurance companies to sell residential insurance along the coast.

A captive insurance company is a closely held insurance company, that might be organized around a particular city or group of condos. Republican Senator Ben Brooks of Mobile sponsored the bill.

www.shanehale.com
www.CraftTeam.com
www.HomeownersCrisis.com