What to do About your Mortgage if you Lose your Jo
Americans are getting back to work after a long, bleak recession. While unemployment rates have fallen in many cities across the nation, however, in a dozen or so states they have actually gone up. Despite an increasingly healthy economy, if you work for someone else there is no guarantee that you won’t find yourself unemployed.
If you’ve lost your job and feel that you can’t make your mortgage payments, don’t panic. While you decide on the next step to take, keep the following in mind.
Don’t hide from your lender. Gather up all your bills and figure out exactly where you stand financially. Know how much money is coming in every month, how much you owe to others and where you can make cuts in your budget.
Once you are clear on your financial situation, contact your lender and make a proposal. If your situation is temporary ask for forbearance until you are back on your feet. This is an agreement between yourself and the lender in which it promises not to exercise its right to foreclose on your mortgage and you agree to a plan in which you will come current on your payments over a certain time period.
If you find that you can make smaller payments, ask the lender for a five-year loan extension. This will naturally reduce your monthly loan payment. Not all lenders are willing to make such an extension, in which case you’ll need to think about more drastic options. These include asking the lender to consider a deed-in-lieu of foreclosure, a short sale, mortgage modification and even bankruptcy.
The Home Preservation Foundation (HPF) is nonprofit organization that operates a toll-free hotline (1.888.995.HOPE). You can call this number 24 hours a day, seven days a week for free, personalized assistance.
The United States Department of Housing and Urban Development (HUD) offers free foreclosure avoidance counseling services.
The most important thing you can do when you lose your job and fear you may be facing foreclosure is to examine all of your options and choose the best solution for you and your family.
Blog Archive2016-09-16 16:23:17
The Home-Buying Wish List
3 Common Home Buying Myths
3 Tips for Attending Open Houses
2 Things to Consider Before Buying a Townhome
4 Tips for Home Buyers with Boats
2 Tips for the Luxury Home Buyer
What is a Buyers Market?
Writing a Strong Offer
3 Important Aspects of the Purchase Agreement
3 Things to Know about Buying New Construction
2 Things to Know about Home Inspections
What to Look for in the HOA Documents
HOA? Beware the Rules and Regulations!
Everything you need to Know about Home Warranties
4 Tips to Close Quickly on a Home Purchase
Your Moving Checklist
Buying your First Home? Avoid these 4 Common Mist
Tips for Buying a Fixer-Upper
First Time Homebuyer: Steps to Success (Step 1)
First Time Homebuyer Steps to Success (Step 2)
First Time Homebuyer Steps to Success (Step 3)
How much can you afford?
The Essential Real Estate Glossary
What is the Earnest Money Deposit
Home Appraisal Basics
Click here to see ALL articles.