An Idea for the Times: Hayden Homes' Home Assurance Program

A lot of people have been wringing their hands in the past few months, pondering the latest dilemma in the real estate industry: There are a growing number of people who -- now that interest rates are low, home prices are decreasing and inventory is high -- are finally ready to purchase a new home but are afraid to move forward with their purchase because of our ongoing economic uncertainty, especially the rise in unemployment.

Until recently, I hadn't heard of any concerted effort to actually do anything to address the problem. But the truth is, without some innovative, unconventional thinking on a grand scale, we won't be digging out of this economic hole anytime soon.

So I admire Hayden Homes for thinking outside the box when devising their latest buyer-incentive program. It's called "Home Assurance Mortgage Protection," and what it does is provide a little peace of mind for the new homeowner.

Here's how it works: If a person who purchases a Hayden home financed through Hayden Homes Mortgage becomes unemployed during the first two years of ownership, Hayden will cover up to six months of mortgage payments (up to $1,800 per month). What's more, the program also provides pre- and post-mortgage education and counseling for two years, along with access to financial emergency assistance.

Now that's an incentive.

Yes, there are conditions (see details, below) and, no, not everyone is eligible (sorry, self-employed; once again, you're out of luck), but it's a start. Who knows? Maybe, just maybe, other developers in the area will read about the program and be inspired to do some creative thinking of their own. Let's hope so. I have heard about other real-estate-industry consumer-confidence-building programs being initiated elsewhere in the country.

Yesterday, I talked to Deb Flagan, Hayden's vice president for marketing and sales, about the program. The goal, she says, is to provide homeowners a sense of security in these challenging times.

So far, she adds, they've gotten a great response. I read about the program in the Bend Bulletin, but the story was also picked up by several TV and radio stations in Oregon and Washington, Flagan says.

Founded in 1989, Hayden has developed subdivisions in 21 communities scattered throughout Oregon and Washington. Last year, the home-grown company built and closed on 560 homes; Flagan says they're on track to do about the same amount this year.

If you'd like to know about the Home Assurance program, here's more info from Hayden:

About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.