Mortgagetrouble? Try transforming your house into a giant BILLBOARD
By Reuters Reporter
Lastupdated 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
Whenthey saw the house on El Dorado Drive in this Los Angeles suburb being painteda startling orange and green and giant billboards hung on the outside, Scottand Beth Hostetler's neighbors were initially angry and confused - some evenconsidered calling the police.
But whatthey witnessed on Friday was not an offensive redecoration decision by theHostetlers, but rather the debut of one of the more unusual schemes to arisefrom the housing crisis.
Inreturn for allowing the front of their four-bedroom house to become a garishadvertisement, the Hostetlers are getting their nearly $2,000 monthly mortgagepaid by the marketing company behind the project, Brainiacs From Mars.
An ad you can live in: Beth and Scott Hostetler pose with theirdaughter Sarah in front of their Buena Park, California, home that has beenchanged into a giant billboard
In aresidential neighborhood without heavy traffic, cars passing by the houseslowed and drivers gawked at the vivid colors and a giant Brainiacs From Marsbillboard.
And ineach 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.
Mendozasaid he chose the Hostetlers because they are nice people and he wants tochoose the most deserving cases rather than homes on the busiest streets.
Since headvertised the scheme on his website in April 2011, Mendoza says he has had38,000 applications, from as far afield as Russia and Japan.
A billboard that's paying off: The Hostetlers are getting theirnearly $2,000 monthly mortgage paid by Brainiacs From Mars. Most of the38,000 applicants for house billboards have come from California, Nevada andFlorida - the three U.S. states hit hardest by the foreclosure crisis.
TheHostetlers, who are both deaf, were one of those applications and were informedthree months ago that their home had been chosen to launch the scheme.
Thereare a number of issues that could prevent the idea from gaining traction,namely zoning laws and other city codes that limit where advertising can beplaced and sometimes regulate other aspects of a home's appearance.
But Mendozasays the idea could help struggling homeowners who face being evicted fromtheir homes through foreclosure, although the Hostetlers say they are going touse the money to pay down credit card debt.
Most ofthe 38,000 applicants have come from California, Nevada and Florida - the threeU.S. states hardest hit by the foreclosure crisis triggered by the collapse inhousing prices after the 2008 financial crash.
Insouthern California 44 per cent of homeowners are 'underwater,' owing more ontheir mortgages than their homes are worth.
Decision: Mr Mendoza said he chose the Hostetlers because theyare nice people and he wants to choose the most deserving cases rather thanhomes on the busiest streets.
In BuenaPark, about one in every 270 homes has been foreclosed upon.
'Theresponse has been overwhelming,' Mendoza says. 'People are hurting, andstruggling to stay in their homes. If we can help some of them, that would begreat.'
Mendoza'splan is to advertise his company's name and its social media marketing tools onthe front of people's homes.
Inreturn, he hopes the quirkiness of the scheme will convince companies to hireBrainiacs From Mars to run their advertising campaigns.
First pick: The Hostetlers, who are both deaf, were informedthree months ago that their home had been chosen by Brainiacs From Mars.
He sayshe is already negotiating deals with some big firms.
Thepayments to homeowners for the initial experiments are being funded by profitsfrom some of his company's other projects.
Thereaction of the Buena Park city council, and some of the Hostetlers' neighbors,suggests that Mendoza could face a bumpy ride.
TheHostetlers' neighbors have been told that the house will only be a giantadvertisement for a month. In fact Mr. Hostetler says he would like it to staythat way for six months.
Good sports: Sarah Hostetler hangs the Brainiacs From Mars logoin the window of her home as her father Scott looks on from outside.
NeighborVivian Largent said: 'If it's for a month, I'm ok with it. But no longer.'
Echoingthat sentiment, another neighbor, 80-year-old Bob Pancoast, said: 'All theneighbors were a little upset at first. We thought they had gone off theirrocker.
'But Iguess it's a good idea for them.'
Mendozasaid he had checked and that there are no restrictions in Buena Park on the colorshomeowners can paint their houses. 'They can paint them multi-colors if theylike,' Mendoza said.
FredSmith, who sits on the Buena Park city council, was surprised when told aboutthe scheme - and not at all happy.
Thecolor scheme was fine, he said. But the advertisements were another matter.
'Thisdoes not follow with the city codes,' he said. 'They are going to be in trouble.They need to go someplace else.'
CharlesMclaughlin, a finance expert in the housing industry, said: 'I don't think theprogram will be a success. It will be akin to graffiti - that's how people aregoing to look at it. They are going to run into zoning problems everywhere.'
Mendozasaid: 'There are definitely zoning issues in some cities, and we realize that.
'But wehave really hit a nerve, and we can't let that stop us. Once people startseeing how it works, once they get it, the moment they realize it is payingpeople's mortgages, they are always on our side, because of this economy.'
Romeo Mendoza, the company's founder and CEO, told Reuters thathis ultimate goal is to turn 1,000 homes across the United States into giantadvertisements for his marketing firm.
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