Mortgage
trouble? Try transforming your house into a giant BILLBOARD
By Reuters Reporter
Last
updated at 6:08 AM on 13th February 2012
House of the ad: Sarah Hostetler looks out from her parents'
home in Buena Park, California, which has become a huge advertisement
When
they saw the house on El Dorado Drive in this Los Angeles suburb being painted
a startling orange and green and giant billboards hung on the outside, Scott
and Beth Hostetler's neighbors were initially angry and confused - some even
considered calling the police.
But what
they witnessed on Friday was not an offensive redecoration decision by the
Hostetlers, but rather the debut of one of the more unusual schemes to arise
from the housing crisis.
In
return for allowing the front of their four-bedroom house to become a garish
advertisement, the Hostetlers are getting their nearly $2,000 monthly mortgage
paid by the marketing company behind the project, Brainiacs From Mars.
An ad you can live in: Beth and Scott Hostetler pose with their
daughter Sarah in front of their Buena Park, California, home that has been
changed into a giant billboard
In a
residential neighborhood without heavy traffic, cars passing by the house
slowed and drivers gawked at the vivid colors and a giant Brainiacs From Mars
billboard.
And in
each case struggling homeowners will get their mortgage paid, for up to a year.
'If we roll it out to scale and impact the foreclosure crisis, that would be amazing,' Mendoza, 42, said.
Mendoza
said he chose the Hostetlers because they are nice people and he wants to
choose the most deserving cases rather than homes on the busiest streets.
Since he
advertised the scheme on his website in April 2011, Mendoza says he has had
38,000 applications, from as far afield as Russia and Japan.
A billboard that's paying off: The Hostetlers are getting their
nearly $2,000 monthly mortgage paid by Brainiacs From Mars. Most of the
38,000 applicants for house billboards have come from California, Nevada and
Florida - the three U.S. states hit hardest by the foreclosure crisis.
The
Hostetlers, who are both deaf, were one of those applications and were informed
three months ago that their home had been chosen to launch the scheme.
There
are a number of issues that could prevent the idea from gaining traction,
namely zoning laws and other city codes that limit where advertising can be
placed and sometimes regulate other aspects of a home's appearance.
But Mendoza
says the idea could help struggling homeowners who face being evicted from
their homes through foreclosure, although the Hostetlers say they are going to
use the money to pay down credit card debt.
Most of
the 38,000 applicants have come from California, Nevada and Florida - the three
U.S. states hardest hit by the foreclosure crisis triggered by the collapse in
housing prices after the 2008 financial crash.
In
southern California 44 per cent of homeowners are 'underwater,' owing more on
their mortgages than their homes are worth.
Decision: Mr Mendoza said he chose the Hostetlers because they
are nice people and he wants to choose the most deserving cases rather than
homes on the busiest streets.
In Buena
Park, about one in every 270 homes has been foreclosed upon.
'The
response has been overwhelming,' Mendoza says. 'People are hurting, and
struggling to stay in their homes. If we can help some of them, that would be
great.'
Mendoza's
plan is to advertise his company's name and its social media marketing tools on
the front of people's homes.
In
return, he hopes the quirkiness of the scheme will convince companies to hire
Brainiacs From Mars to run their advertising campaigns.
First pick: The Hostetlers, who are both deaf, were informed
three months ago that their home had been chosen by Brainiacs From Mars.
He says
he is already negotiating deals with some big firms.
The
payments to homeowners for the initial experiments are being funded by profits
from some of his company's other projects.
The
reaction of the Buena Park city council, and some of the Hostetlers' neighbors,
suggests that Mendoza could face a bumpy ride.
The
Hostetlers' neighbors have been told that the house will only be a giant
advertisement for a month. In fact Mr. Hostetler says he would like it to stay
that way for six months.
Good sports: Sarah Hostetler hangs the Brainiacs From Mars logo
in the window of her home as her father Scott looks on from outside.
Neighbor
Vivian Largent said: 'If it's for a month, I'm ok with it. But no longer.'
Echoing
that sentiment, another neighbor, 80-year-old Bob Pancoast, said: 'All the
neighbors were a little upset at first. We thought they had gone off their
rocker.
'But I
guess it's a good idea for them.'
Mendoza
said he had checked and that there are no restrictions in Buena Park on the colors
homeowners can paint their houses. 'They can paint them multi-colors if they
like,' Mendoza said.
Fred
Smith, who sits on the Buena Park city council, was surprised when told about
the scheme - and not at all happy.
The
color scheme was fine, he said. But the advertisements were another matter.
'This
does not follow with the city codes,' he said. 'They are going to be in trouble.
They need to go someplace else.'
Charles
Mclaughlin, a finance expert in the housing industry, said: 'I don't think the
program will be a success. It will be akin to graffiti - that's how people are
going to look at it. They are going to run into zoning problems everywhere.'
Mendoza
said: 'There are definitely zoning issues in some cities, and we realize that.
'But we
have really hit a nerve, and we can't let that stop us. Once people start
seeing how it works, once they get it, the moment they realize it is paying
people's mortgages, they are always on our side, because of this economy.'
Romeo Mendoza, the company's founder and CEO, told Reuters that
his ultimate goal is to turn 1,000 homes across the United States into giant
advertisements for his marketing firm.
NOTE: FOR ANOTHER APPROACH TO COPING WITH
ECONOMIC STRESS, PLEASE SEE:
That's a great idea!
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