Plans to pump up home sales

USA Today reported late last week about plans by the Obama administration to assist homeowners who have been laid off and can’t pay their mortgage. The story said that could include letting homeowners skip monthly payments or offering grants or loans to cover part of the mortgage in the event of a job loss.

With Georgia’s high unemployment rate, some Atlanta real estate firms have recently rolled out job loss protection programs for buyers who use their agents or purchase in their new communities and are concerned about losing their jobs after moving in.

“A lot of people are sitting on the fence,” says Leslie Williamson with Coldwell Banker NRT Development Advisors. “We wanted a way to overcome that objection that people have. It offers peace of mind.”

Coldwell Banker NRT Development Advisors’ new job loss program provides six monthly payments of up to $1,500 a month toward a mortgage. It applies to new buyers in its nearly 25 single-family, condo and active adult communities in Atlanta who involuntarily lose their jobs.

Prudential Georgia Realty’s plan, called the HELP (Homeowner Education and Loan Protection) Program, provides up to six monthly payments of $1,800. It is administered by the Rainy Day Foundation, a non-profit organization.

“There’s more of an economic look of purchasing a home these days than a cosmetic look,” Williamson says. “Years ago it used to be, ‘I don’t like your amenities package or your finishes.’ That’s not it these days. It’s about price when you’re purchasing a home of course. That’s the No. 1 reason for not buying. Then am I able to get a mortgage? Can I sustain a mortgage?”