Lately, it seems like every time I turn on the television or open a newspaper there's another big company announcing plans for massive layoffs. And for many people, the headlines have become their reality. I personally know a handful of people who lost their jobs this year and a handful more who are concerned they are the next to be let go. With a cloud of uncertainty looming over our heads, it's no wonder most people aren't out spending on big ticket items like cars and houses.
But for some retailers, waiting out the economic downturn isn't the answer. To help lure consumers off the sidelines, some retailers have decided to up their promotional antics by offering "risk-free guarantees." I'm sure you've all seen the Hyundai ads by now. HYUNDAI AD: "Now, finance or lease any new Hyundai, and if you lose your income in the next year, return it to us with no impact on your credit." Hyundai recently tacked on extra guarantees to the promotion. If you lose your job, they'll cover your loan payments for up to three months. Meaning, you keep the car.
Toll Brothers' mortgage protection plan
The executives over at Toll Brothers Inc., a luxury home builder, must have been watching these ads too. Earlier this week, the company announced a promotion they're calling their "mortgage protection plan." But unlike the Hyundai promotion, you can't give back the house if you lose your job. If you do get laid off, Toll Brothers will cover your mortgage payment - up to $2,500 for six months. The mortgage insurance may also cover up to six months of principal, interest, homeowner's insurance and real estate taxes. Toll Brothers, however, won't pay your mortgage if you're self-employed or own part of the company, or if you lose your job due to misconduct, disability or hospitalization.
The policy is also set up to pay out a percentage of a household's lost income if there are multiple borrowers. For example if one spouse loses their job and contributes 50% to the household income, the mortgage protection plan would pay 50% of the couple's housing costs.
To be eligible for the insurance payouts, homeowners need to have worked at least 30 hours a week and been continuously employed for 12 consecutive weeks before losing their job. Another stipulation of the Toll Brothers' promotion is that the mortgage insurance policy is being offered to people who only finance their homes through the company's TBI Mortgage unit.
Now if Toll Brothers can just guarantee that your new home won't be worth less in six months, then this would be a deal too good to pass up.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
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