Dealing with Mortgage Payments when Unemployed
Home foreclosures are a reality now more than ever. And tied with the layoffs and the high number of unemployed, meeting mortgage payments is not easy for some people. If you’re one of those who have lost their jobs and has mortgage to pay, there are things that you can do to keep your home despite losing your main source of income.
What will happen if you miss your mortgage payments?
The worst thing is that your house will be foreclosed. But this will only happen if you run away from the problem and not face it head on. Within 4 to 6 months of not meeting your mortgage payments, you may be facing an order for foreclosure. This is why you need to always communicate with your lender or mortgage holder. Always take their phone calls and reply to their mails. What you need to relay to your lenders is that you’re willing to pay, it’s just that you’ve hit upon hard times. Most lenders are willing to make plans and revisions to the mortgage plans.
Negotiate with the lender for better payment terms or temporary suspension of payments.
Most lenders are not agreeable to foreclosure as it’s expensive and takes a lot of work. If you talk with your lender, you can explain your situation and you can come up with some form of compromise for the payment. You can opt for reinstatement, forbearance, or a repayment plan to avoid foreclosure. If the situation would last for a long time, you can also ask for a modification in the mortgage plan. But these won’t happen unless you keep close communication with your lender.
Consider other sources of mortgage payment (savings, unemployment benefits, etc.).
If you’re not really zero balance, meaning you still have other assets aside from your job income, you can consider using those to make your mortgage payments. Also, you can get part time jobs to keep you afloat. And if you’ve been unemployed for a time, you can apply for state unemployment benefits and use those to pay for the mortgage. If you also have expected money coming up, like from tax returns or some other sources, you can also use that to pay your mortgage.
You can also look at government programs, such as stimulus packages and the HOPE program for homeowners. Refinance options from the government are also available. You should also talk with an official advisor from the housing authorities to get your full range of options in keeping your home.
Losing a job is a hard blow for anyone. You would be plagued by several fears, and if you have mortgage payments to make, your chief fear would be losing your home. But this is not the time to curl up in a corner. This is the time that you need to act decisively and quickly. Though your chips are down, you are not helpless. What you need to do is to talk with your lender and work out the best payment options for your situation.
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