Protecting Your Home From The Loss Of A Job

Sunday, March 1, 2009

Protecting Your Home From The LossOf A Job (NAPSA)—Job loss is the single greatest cause of mortgage foreclosures. That’s the opinion of many experts, such as researchers at the Federal Reserve Bank of Boston and other economists. Fortunately, the loss of a job doesn’t always have to mean losing your home. A growing number of smart homebuyers are looking for ways to protect what is probably their most valuable asset. Many are taking advantage of a new feature offered by private mortgage insurers. Called Job Loss Protection, it’s designed to meet the individual financial needs of people who involuntarily lose their jobs. That’s an all-too-common reality in these challenging economic times, but the good newsis that the benefit is available at no extra cost to homebuyers. To help buyers stay in their homes, mortgage insurers, such as Genworth Financial, purchase the Job Loss Protection benefit when they insure a low down payment mortgage loan made by a participating lender partner. “It’s good to see a borrower walk away from the closing table with the added peace of mind that comes from having a financial cushion in case of job loss,” said Chris Antonello, a Genworth executive. “The benefit allows affected homeowners to focus on searching for a new job without worrying that the mortgage payment is coming due.” The program may pay a qualifying borrower’s mortgage pay- ment (principal, interest, taxes and insurance) up to $2,000 a month for up to six months. Benefits are paid directly to the mort- = AaB Maat A growing number of homeowners are protecting their home from foreclosure with Job Loss insurance offered by mortgage insurers. gage company, just as if the borrower had made the payment. The borrower vesting period is 60 days after closing, and payments begin 30 days from the date of involuntary unemployment. The benefit stays in place for up to three years after the loan closes, while the mortgage insurance remains in force. Most unemployment events covered by state unemployment benefits are covered under the program. Seasonal, temporary and voluntary jobs or self-employment are not eligible, however. There are other eligibility require- ments that a borrower must meet in order to qualify. “Job loss mortgage protection helps protect borrowers’ credit standing by preventing them from falling behind on their mortgage payments, and it makes their emergency savings go further,” Antonello said. “It helps make for smarter, safer low down payment loans.” For more information, go to SmarterMI.com/benefits.html.