"New mortgage protection plan available for buyers" reads the headline of Lennar's advertisement in today's Miami Herald Home Guide section. No matter how many times I read this sales pitch, I am still shaking my head in disbelief: "If I lose my job," the advertisement begins, postulating a Miami Herald reader who might buy a home but for the risks of the worst economy since the 1930's, "how will I make my mortgage payment?" Good, so far.
"Lennar is telling wary home buyers "don't worry" because they have taken much of the risk out of the equation with the launch of their "Peace-Of-Mind Job Loss Mortgage Payment Protection Plan".
Wow. Is that serious?
"This new program gives buyers peace of mind... one less thing to worry about when it comes to buying a new home," explains Carlos Gonzalez, president of Lennar's Southeast Florida division." Let's see if I get this right: Lennar is so desperate it is saying that its buyers don't need to worry about a job and a steady income to pay a mortgage?
"If job security is the only thing keeping someone from buying a home at this time, now there's nothing to worry about."
Nothing to worry about? !!#%@#% "This program will help ensure that their mortgage remains intact in the event of a layoff, with reasonable time to secure a new position." "Program enrollment is free."
This is the point where I raise my hand like the slow kid at the back of the school room. What, I would ask, is a reasonable period of time? What if the only job I can find is in another part of the country? The mortgage is going to be intact, I'm going to be out of a job but in a Lennar home in Florida City or Homestead where the tax base has dropped so fast it doesn't cover the cost of police protection. How is this going to improve my stress level or credit rating?
Not to worry, Lennar promises its "everything you want, everything you need philosophy" except a good shot of LSD, which is really what you would need to believe that the resolution to the foreclosure crisis is to believe that consumers can get something for nothing. This ad is literally the production homebuilder's version of "Jackass", the movie.
It is the way communism was sold to poor Russians in the 1920's that lead to Stalin in the 1930's.
The advertisement closes with a long legal disclaimer that I won't print in full. Let me just say this: whatever troubles Lennar executives are facing in their business, this ad has the aroma of pure panic. Shame on The Miami Herald for allowing this nonsense be published in its pages.
10 comments:
BTW Lennar owns the mortgage company.
And either way, they own the buyer in the end.
Ya what a horrible thing to provide an insurance policy or form of assistance for people who may loose their job in this market. Shame on Lennar and UAMC- how dare they try to provide something that may be helpful for a homebuyer that may find themselves in a financial hardship- they should just provide something like an upgrade on the appliances or upgrade on the flooring- now that is what people need in this market. Damn builders! Why are they trying to do something beneficial for a homebuyer? They need to concentrate on standard marketing procedures like upgrading crown molding or including big screen TV's with their home purchase! Why should they care about the buyer after they get in the home? Builders should simply do whatever it takes to get buyers in a home and then screw 'em! Ya, thats a better way to go.
SOMETIMES...when people are so stupid it is not worth my effort to respond, I just have one word for them:
PUTZ.
LSD and Houses - This post is silly. This company is not the only one offering some kind of payment incentive and I dont get what you are complaining about.
Did lennar do something to you? What the hell are YOu doing to help.
This post FAILS. You own me $$$ for reading it.
Who asked you to read it? This blog is a labor of like...we don't get anything more if people read it or not. Feel free to not to read it.
It is obvious that Gimleteye has written this in part with tongue in cheek. Relax readers.
Yes, trying to protect homeowners is a good things, if they really should be buying. Some people should not be buying under the best of circumstances (no down payment, buyer protections, etc). Is Lennar trying to protect homeowners or sell a house? Gimleteye is saying, obviously they are trying to sell a House first and foremost.
Many questions remain unanswered for the buyer with this program. The devil being in the details....or the fine print.
Here is the program from the Rainy Day Foundation that Lennar offers (First the HUD Disclaimer: The Punctual Payment Program® works within current HUD/FHA lending guidelines. HUD has reviewed the program. HUD has not approved the program nor do they oppose it. It is the lender's responsibility to determine program compliance. Punctual Payment is not a down payment assistance program. It is a post homeownership program designed to encourage and reward financial responsibility while providing counseling, education and financial protection services.)
Welcome
The Punctual Payment Program® provides homebuyers with reimbursement of their mortgage payments and financial difficulty assistance and resources should they encounter unforeseen financial challenges in their first year or so of homeownership.
In a country where homeownership is valued and promoted for a variety of sound reasons, there is an overwhelming amount of Americans who are facing financial challenges from; high unsecured debt, the effects of bad credit, job loss and cutbacks, marital issues, etc... These challenges and others have greatly impacted US households and oftentimes result in mortgage delinquencies and home foreclosures.
Given local market conditions, many sellers are faced with reducing the sales price of their property from once, to a few times in order to draw prospective homebuyers to purchase. Offering the Punctual Payment Program® will draw more traffic and sell the home quicker. Marketing the selling of a home as, "Your Mortgage Payments Reimbursed" generates buyer's attention and will assist in providing financial stability for the homeowner. Particularly in today's economy, homebuyers are much more interested in having money in the bank, versus the option to have upgrades in their home, a rate by- down, or even a reduced sales price.
The Program provides homebuyers with an opportunity to achieve two significant goals: 1) Reduce troublesome debt or 2) Create significant savings. No other program service can offer these powerful financial benefits.
The Punctual Payment Program® is administered by the Rainy Day Foundation.
SO IT SEEMS YOU ONLY GET PROTECTION FOR THE FIRST YEAR OF OWNERSHIP?
http://www.punctualpayment.org/home/
if you think this is a "bad" program you are a complete idiot! if you buy a house and for some unforseen reason you lose your job this allows you to protect your asset while you look for a new job. if you are renting an apartment or house and you lose you job do you know what you get ... evicted!
this isnt a scam or designed to put some one in harms way it is designed to help you get over a hump.
if you think this is a bad thing i guess you would be of the same belief that if you took life insurance it would be a scam because the person paying for it isnt around to benefit from the payout.
stand up and see the roses!!!
YOU ONLY GET PROTECTION FOR THE FIRST YEAR OF OWNERSHIP
Stupid reader: read this again....
Here is the program from the Rainy Day Foundation that Lennar offers (First the HUD Disclaimer: The Punctual Payment Program® works within current HUD/FHA lending guidelines. HUD has reviewed the program. HUD has not approved the program nor do they oppose it. It is the lender's responsibility to determine program compliance. Punctual Payment is not a down payment assistance program. It is a post homeownership program designed to encourage and reward financial responsibility while providing counseling, education and financial protection services.)
Welcome
The Punctual Payment Program® provides homebuyers with reimbursement of their mortgage payments and financial difficulty assistance and resources should they encounter unforeseen financial challenges in their first year or so of homeownership.
In a country where homeownership is valued and promoted for a variety of sound reasons, there is an overwhelming amount of Americans who are facing financial challenges from; high unsecured debt, the effects of bad credit, job loss and cutbacks, marital issues, etc... These challenges and others have greatly impacted US households and oftentimes result in mortgage delinquencies and home foreclosures.
Given local market conditions, many sellers are faced with reducing the sales price of their property from once, to a few times in order to draw prospective homebuyers to purchase. Offering the Punctual Payment Program® will draw more traffic and sell the home quicker. Marketing the selling of a home as, "Your Mortgage Payments Reimbursed" generates buyer's attention and will assist in providing financial stability for the homeowner. Particularly in today's economy, homebuyers are much more interested in having money in the bank, versus the option to have upgrades in their home, a rate by- down, or even a reduced sales price.
The Program provides homebuyers with an opportunity to achieve two significant goals: 1) Reduce troublesome debt or 2) Create significant savings. No other program service can offer these powerful financial benefits.
The Punctual Payment Program® is administered by the Rainy Day Foundation.
SO IT SEEMS YOU ONLY GET PROTECTION FOR THE FIRST YEAR OF OWNERSHIP?
http://www.punctualpayment.org/home/
January 21, 2009
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