In most cases, your lender will verify that you are employed the day they fund your loan. After that, you’re on your own; mortgage banks really don’t care how they are getting paid as long as they are getting paid. Unlike some car dealerships, if you lose your job you can’t just hand the keys to your home back and walk away without serious repercussions. Concerns about the “economy in crisis” are very valid. Having six or more months of reserves has always been recommended but it not a reality for many.
Prudential Northwest Properties and the Rainy Day Foundation have partnered, exclusively for now, to offer Job Loss Protection to buyers. Sellers of Prudential Northwest Properties listings can offer the program to any potential buyer and buyers working with Prudential Northwest Properties’ Realtors can write it into any offer they write. In other words, there must be a Prudential NW Properties Realtor involved in the transaction.
The basic features of the program are outlined in the graphic below but please read the entire description of the Job Loss Protection Program. There is no silver bullet to mitigate all risk from a real estate transaction and we’ve always been proponents of home warranties as one more level of protection for buyers (and sellers). Just like the First Time Buyer Credit, not everyone qualifies but for those that do, it may add another layer of confidence.