Now this is something new to me. I’ve seen the car commercials where you are told that if you buy their car, and then lose your job, they’ll make your payments for you for a certain amount of time. You can also give the car back, and get out of your loan that way. That’s cars. Now we are seeing deals like this for houses!
Read this article today on MSNBC’s web site: “Layoff Insurance Latest Carrot for Homebuyers.” The article is written in Los Angelos. I haven’t heard of anything like this offer in Mason County, or in Washington State. However, that doesn’t mean it isn’t happening here, or that it won’t happen here in the near future. It can take a while for things like this to make the news.
Free granite countertops, swimming pools and landscaping aren’t going to convince anyone who’s afraid of losing a job to buy a home. But what about a promise to pay your mortgage if you get laid off?
With the unemployment rate at a 26-year high and home sales still in the dumps, a growing number of homebuilders and even some real estate agents are trying to coax buyers with a kind of mortgage unemployment insurance.
Major builders offering job loss mortgage payment plans include Lennar Corp., Pulte Homes Inc., The Ryland Group Inc. and Toll Brothers Inc.
The article goes on to say that some real estate agents are also getting involved with “lay off insurance.” It says:
Some real estate firms also are getting into the act.
Keller Williams Realty Inc. began offering job loss protection through the Rainy Day Foundation a couple of weeks ago as a test program in South Florida with an eye to an eventual national rollout.
“We’re bringing it to our sellers as a marketing opportunity,” said Greg Cook, spokesman for Keller Williams South Florida.
People can come up with ideas that just don’t occur to me. The above feels a little gimmicky, and I’m not really convinced that this is a good idea. Nevertheless, it caught my attention today. When people are anxious about the economy and no longer feeling secure in their employment, something like “lay off insurance” might be the “carrot” that helps them decide to buy.
On another note. The recent shootings across our nation highlight the desperation some people are feeling. Unfortunately when people get desperate, you never know what they might do next. Desperation can be especially dangerous for people who do not have networks and support groups, like family and friends, to help them through the tough times. I’m not sure what we as a nation can do about the growing desperation of those who have lost their jobs, and will lose their unemployment benefits before they find a new job. As individuals, however, we can be on the watch for the needs of our neighbors and perhaps find ways to be a support in these difficult times so people do not “go over the edge.” Not everyone has the inner resources needed to get through hard times, but when others offer them even emotional support, it can make all the difference.
Tags: builders, homebuyers, houses, layoff, real estate agents
