The number one factor holding potential buyers back from purchasing a home is fear of job loss. Even with home prices discounted by more than 50% in some cases and mortgage rates at historical lows, many prospective buyers are waiting to purchase until they feel more secure about their job. The economy has shed over a million jobs in the last two years and many would be buyers are facing the harsh reality that they could be next.
As real estate professionals, we face buyer and seller objections every day. Those Realtors equipped with knowledge and proper scripting can overcome most objections. Fear of job loss is the one tough objection that is difficult to overcome. That is, until now. What if you could offer a mortgage product that included "Job Loss Protection"?
Well, now you can. First Trust Mortgage, in conjunction with the Rainy Day Foundation have partnered to offer a "Homeowner Education and Loan Protection Mortgage Program." In addition to the mortgage, the program assists homeowners in creating and maintaining financial wellness. This is accomplished through communication, education, counceling and financial assitance if necessary. The four critical components of the "HELP" program are:
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24 Month Homebuyer Counseling - The homeowner will be contacted shortly after closing by the Rainy Day Foundation to fully explain the "HELP" program. The buyer will learn of the educational assistance and financial resources provided by the "HELP" program. It will assist the buyer in creating a successful ontime relationship with their lender during the critical first two years of homeownership. Optional outbound calls to the homebuyer will be made available for the first six months. This service will continue for the next 18 months inbound from the buyer.
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24 Month Job Loss Protection - Today, the number one reason for mortgage default is loss of employment. This is why the Job Loss Protection Program is such a tremendous benefit to a buyer. Protecting homeowners from the most common cause of foreclosure is the "HELP" Program's goal. The program provides up to six monthly mortgage payments during the first 24 months of the loan. Qualified homeowners who experience involuntary loss of employment will receive up to $2,000 per month (PITI) for a maximum of six months.
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24 Month Homebuyer Educational Newsletter - "HELP" provides sound financial tips and informational resources to assist the homeowner in maintaining financial stability. The newsletter provides instructive service developed to give homebuyers the knowledge and tools necessary for them to become successful long-term homeowners. Each Newsletter will place heavy emphasis on the home budgeting process, mindfulness about spending money, ways to save on expenses and how to create and implement a personal savings strategy.
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24 Month Access to the "HELP" Emergency Relief Fund - This service may provide homeowners with assistance for any other type of unforeseen financial difficulty. In short, this program will be a safety net for homeowners should they experience a short-term financial challege. The assistance "HELP" provides may be fiancial, educational, or both.
The cost of the program is a one time charge of $500. It can't be paid for by the buyer, but can be paid by the seller, Realtor, or Mortgage Professional. The cost of the program is also exempt from Fannie Mae or FHA seller contribution limits. So, it can be offered as part of the transaction in addition to the maximum seller contribution guidelines.
Buyer Agents can use the "HELP" Program to add value and protection to a potential homebuyer.
Listing Agents can use the "HELP" Program to promote a property and as part of an incentive program to distinguish the seller's property from others in the marketplace. You can utilize the logo above to attract buyers to your listing.
For complete "HELP" Program information and how it can help you sell more homes, contact:
Harvey Collier - Certified Mortgage Planner - First Trust Mortgage - 954-629-6151
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