With the successful completion of its payment assistance plan for home buyers who are laid off from their jobs, the California Association of Realtors has launched a new program, this one paid for by sellers.
Under the original Mortgage Protection Program, which ended in June, at no cost to either the buyer or the seller, some 5,500 first-time buyers took advantage of an initiative which gave them up to $1,500 per month for up to six months if they lost their jobs because of a layoff. The program was funded through CAR's Housing Affordability Fund, which itself is funded largely through CAR-member donations.
Under the new Home Payment Protection Program, sellers are offered the option when they list their homes to provide layoff insurance as an added incentive to prospective buyers. The program is paid for by the seller and is completely optional.
The program covers both first-time and repeat buyers for 12 months from closing and provides up to six mortgage payments of up to $1,000 or $1,500, depending on the coverage level the seller chooses. A seller can choose to pay $200 for six mortgage payments up to $1,000 or $275 for six mortgage payments up to $1,500.
CAR President Beth Peerce called the new program "a win-win benefit" for both buyers and sellers. "By offering the Home Payment Protection Program as an added incentive to buyers, sellers have an additional way of differentiating their home from others and can sell their home more quickly, while prospective buyers who are feeling uncertain about their employment situation have an added layer of security," she said.
CAR has 160,000 members and is the largest state affiliate of the National Association of Realtors.
