Is this the right offer for the times? On the one hand, it is a great idea to offer a potential home buyer the peace of mind that, should you lose your job, your mortgage will be one less worry. Wait a minute though....isn't risky lending one of the components that got us into this economic mess to begin with? Exactly what kind of buyer is this ad going to attract? If it attracts responsible buyers purchasing within their affordable range who are uncertain about buying, then great. Getting responsible buyers to make responsible purchases is the goal of all of the economic stimulus we'ver heard about recently. If, however, it attracts irresponsible buyers who KNOW their job is in danger, or encourages those with uncertain employment to get a bigger loan, it is a terrible idea. This same sort of offer is found in not just home buying, but in nearly all areas of major purchases. Hyundai recently ran television ads with a very similar message.
I'm all for doing what it takes to get responsible people spending, but I hope that the lenders tied to these deals are donig a better job of screening applicants before giving a loan.