Car Carrot Carrying Over to Homebuyers

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?

It started in the auto industry when ads started popping up from dealers promising to make your car payment for a year if you lost your job.

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 similar to what the auto industry has been offering for a few weeks now.

It’s not a nationwide thing (YET), but where it is being offered, builders can pay anywhere from $450 to $900 per customer for the coverage. Some absorb the cost as they would any other sales promotion, while others pass it on to buyers.

Some real estate firms also are getting into the act, with plans that pay up to $2,500 to cover the full mortgage payment, including taxes and insurance, for six months, should you lose your job.

Do incentives like this make you think twice about buying a home during these troubled times? We’d be curious to hear your thoughts on this idea that is just now starting to take hold in some parts of the country. Leave us your comment by clicking the comment link below. Your privacy will be protected, as we do not publish email addresses with comments.
 

.