Sarasota's Prudential Palms Realty is teaming with a non-profit homeowner's assistance network to cover six months' worth of mortgage payments should the buyer lose his or her job.
The job loss has to occur within the first two years of the loan but if it does, the Rainy Day Foundation will partner with Prudential Palms to cover the payments.
"This program is really awesome," said Chris Harrington, Prudential Palms' chief operating officer. "We're really happy with it."
The home's seller pays the cost of enrolling the buyer in the Rainy Day Fund, which is a national group supported by builders, lenders, organizations and individuals.
In 2008 the foundation paid out over $4 million in assistance and its managers anticipate nearly $8 million in relief will be given out this year.
The Rainy Day Foundation's Web site says the nonprofit has helped thousands of people stay in their homes during its first five years.
The fund's managers say four reasons for falling behind prevail. They are:
Most homeowners spend their financial reserves required for loan approval within the first 60 days of owning the home.
A majority of low-to-moderate income homeowners do not have enough savings to survive even one financial setback.
Homeowners who get in trouble are those who do not have a budget and do not plan financially for the future.
Most homeowners add significant debt related to the home during first two years of a mortgage.
Tuesday, May 26, 2009
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