Home-Value Insurance May Be the Push Buyers Need
RISMEDIA, April 23, 2009-(MCT)-There are would-be home buyers out there who are ready and able, but just not willing. They can't bring themselves to pull the trigger. Click hear to read full article
What if those buyers had insurance policies that would protect them if their homes lost value?
That's the proposition of Joe Hanauer, chairman of Move Inc. He's proposing that Uncle Sam offer the insurance as yet another variation on a housing bailout.
That's the proposition of Joe Hanauer, chairman of Move Inc. He's proposing that Uncle Sam offer the insurance as yet another variation on a housing bailout.
Hanauer suggests such a plan could play out in several scenarios, depending on how much of the tab the government picked up and how much the sellers and/or buyers would chip in. The premium would amount to 1% to 3% of a home's purchase price, and the insurance would pay off if the house were sold for a loss after three years or more.
It would cover a loss of up to 10% of the price paid. But if the house were sold for a gain, those sellers would reimburse the government for part of the profit, although Hanauer did not suggest how much.
Interesting concept.
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