Struggling homebuilder Lennar has launched its “Peace of Mind” mortgage payment protection program, aimed at bringing in more prospective buyers concerned about job security.
Calling loss of employment the “number-one reason for mortgage default,” Lennar is offering to pay up to six months of mortgage payments if a new buyer loses their job after purchasing a new home.
It’s especially timely, with Speaker of the House Nancy Pelosi noting that 500 million Americans lose their jobs every month.
As part of the agreement, Lennar will pay up to $1,800 per month so long as the borrower experiences an involuntary loss of income (you can’t quit your job).
“‘Peace of Mind’ also comes in the form of available funds for other unexpected expenses during the period of unemployment such as medical issues and other events incurring significant financial responsibility,” the company said on its website.
This is the latest incentive launched by a major homebuilder to boost flagging home sales, as most purchase loans lately have been tied to distressed properties.
The National Association of Home Builders recently called for 2.9 percent mortgage rates to increase sales and lift the glut of unsold inventory.
Of course, they don’t seem interested in lowering prices on their properties, as any profit loss surely would be unacceptable.