Two builders active in the Charlotte home market, Toll Brothers and Lennar, are offering their versions of a buyer-protection plan. The plans seem inspired by South Korean automaker Hyundai, who has been advertising a program that allows customers to return cars within a year of a lease or purchase if they lose their jobs. The builders' are offering a mortgage protection plan that will cover a buyer’s mortgage for up to six months if there is a job loss.
Toll buys involuntary unemployment insurance on behalf of buyers who use Toll’s financing subsidiary to close and fund their home loan. The plan will cover up to six months of mortgage payments, including principle, interest, real estate taxes and homeowner insurance — up to $2,500 per month — if the borrower incurs a job loss within 24 months of closing on the home. There are other requirements, such as buyers can’t have knowledge of a pending job loss at the date of settlement. With Lennar, qualified homeowners enrolled in their "Peace of Mind Mortgage Protection Program" can have their mortgage payments of up to $2,500 per month paid for up to six months.