Last year, I found myself in the very unfortunate position of being laid-off. I had thought that with the downturn of the economy I could find myself in this situation, but I really thought I would have some idea it was coming before it happened. Well, I didn’t. I had no idea.

The first of many thoughts was, “Oh my gosh, how am I going to afford my house?”, then I went into an immediate panic.

“What if I become unemployed after I purchase a home?” is a common concern we hear in the Client Relations department at the Allen Tate Company. With recent unemployment rates near 9%, what buyer wouldn’t consider this as a possibility? The “Job Loss Protection Program” is an option offered through Allen Tate that can protect a buyer in the event they are laid off.

Job Loss Protection is not a new concept. It has been traditionally offered in other industries, such as the automobile industry.

Basically, if a buyer loses his or her job in the first 2 years of home ownership, they can qualify for payment benefits which helps out when savings is not sufficient to cover mortgage payments.

Here are some points on the program:

• Provides up to 6 months of mortgage payments during the first 24 months from date of closing if the borrower or co-borrower becomes involuntarily unemployed
• Coverage up to $1,800 per month
• Properties listed for sale by Allen Tate Company or purchased through an Allen Tate Realtor® are eligible for coverage under this program.
• Cost of program is $595, payable at closing.
• Buyer will receive information packet within 45 days of closing to explain program

In my case, I was able to find a position within 6 weeks. I would have liked the safety net and peace of mind to know that my mortgage payments could have been covered, but unfortunately I did not know that this type of program even existed. If losing your job hinders your decision to purchase a home, this is a program that can help put your mind at ease!

By Regina Walter