Pink Slip Mortgage Protection Plan Coverage

By
Real Estate Agent with Keller Williams Realty

Crying Businesswoman Holding a Pink Slip

Now I'm impressed!  One of the smartest plans I've seen available for buyers.  I received an email discussing the "Worry Free" Protection Plan available for buyers on their new mortgage loans.

Because there are concerns regarding job stability and making a move that involves a mortgage commitment a new program has been implemented.  This is a two year program that helps the buyer with unexpected layoff.  This program was put into to place to help a homeowner who has an involuntary loss of employment not become a foreclosure stat.

To Qualify for Worry Free Mortgage

  • Must be an involuntary loss of employment
  • Cost for coverage cannot be on the closing statement for FHA or VA
  • Any party can pay for the coverage which costs $525 one time fee at close and is in place for the first two years of loan.
  • Conventional loans allow this cost to be reflected on the closing statement
  • Six months of mortgage payments for qualified homeowners who experience the involuntary loss up to $1,800 per month (PITI)

This program offers a great hand hold to buyers who have job security concerns but are in a position of needing to purchase a home.  A great question to ask your preferred lender if they have this program available.

Comments (11)

Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

....nice Connie ! ...maybe there are some new programs soon to emerge that cater to the real needs of some of the challenges being faced today. Sounds like this may be one of them.


Thanks for sharing !

Feb 10, 2009 03:48 AM
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

I read about this program associated with a large national bank. I think it's great to restore or add confidence to buyers on moving forward!

Feb 10, 2009 03:58 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

I know that Bank of America has a buyer protection plan that has recently been very popular with my customers.

Feb 10, 2009 04:18 AM
Karen Otto
Home Star Staging - Plano, TX
Plano Home Staging, Dallas Home Staging, www.homes

A very reasonable investment for peace of mind for those buyers who may be hesitant about the next couple of years (who among us isn't anyway?) and are sitting on the fence.

Feb 10, 2009 10:04 AM
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

HI CONNIE!  I have not heard of this before -- thank you for enlightening me!  It is terrific information for first time home buyers to help with jitters! -- Gabrielle

Feb 10, 2009 10:04 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Connie, I agree this is agreat program and borrowers should ask the bank about it when applying for a mortgage.

Feb 10, 2009 11:31 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I was wondering when someone would get around to offering a specialized type of insurance to cover such situations.

Feb 11, 2009 07:11 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Connie,

It's not so much a program (think Green Mortgage or First Time Homebuyers Assistance) as it is an insurance product, and the cost should be evaluated as such.

Mike in Tucson

Feb 12, 2009 11:01 PM
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

Hi Connie:

I've been reading about all these programs too...

ToulaRosebrock.com

Feb 12, 2009 11:09 PM
Midori Miller
Talk 2 Midori, LLC - Daytona Beach, FL
Online Marketing For Real Estate Professionals

Lenders are getting smarter at least I would like to think so...One of my credit card companies offers similiar protection for a fee!  Yes I bought..you never know...when life will change.. I imagine most sellers did not buy their home to plan on not being able to afford it!  Its good to know and great info to get out to the public.

Feb 12, 2009 11:16 PM
Cherimie Crane
Cherimie Crane & Associates - Beaufort, SC

Connie,

Thanks so much for sharing. This is the kind of information we need~!

Feb 14, 2009 11:20 PM