What to do When You Lose Your Source of Income and You Have a Mortgage
This paper aims at touching on the challenges that people face when they lose their jobs to serve as a source of inspiration to study this topic Women are the primary welfare beneficiaries of social security where they take comfort in employment and holding a mortgage. This is that feeling of insecurity that accompanies unemployment and thus, you should be proactive and do whatever it takes to ensure that you are not left stranded by your mortgage. Nevertheless, in this article, we will describe some strategies and available alternatives for dealing with a mortgage in case of losing a job, so that you would feel calm and armed during this trying state of affairs.
The first thing that the person should do soon after he or she loses a job is to inform the mortgage lender. I assume this claim is true because when dealing with lenders, it is best to be straightforward and inform the lender that one has lost their job because many lenders have adjustment programs for individuals who have loss their jobs. You might try to negotiate a short-term reprieve from the mortgage company or adjustment of your mortgage in order to devise means of making just the interest payments until you get a new job. Also, expenses should be ranked to increase the amount of money to be used in paying the mortgage since other expenses are unnecessary. Thus, learning about options and reaching out the lender, it is possible to move through this problematic period and stay owners of the house.
Getting a Mortgage Even If You’ve Lost Your Job
The kind of behavior that is expected from a person after losing a job depends on the type of mortgage he or she possesses.
It is generally unprofitable and stressful when people are let go of at their workplace, let alone the problems that arise when it comes to paying the mortgage. Still, to succeed and keep your mortgage in check, there are several measures you can follow to overcome this mentally damaging period.
The first and the main measure that should be taken is to address your lender immediately. Inform them about your job loss and ask whether there are any services that can be provided to you in this situation of a financial loss. A lot of the lenders today, practices necessary procedures on how they can support a homeowner who has been laid off on his or her job or any other hardship.
This may come in the form of a forbearance plan which is one of the choices your lender can present to you. This enables you to temporarily suspend or pay a lesser amount to your loan for sometime, until you are back on your feet again. Of course, one should know the details of the forbearance plan and how it will influence the given mortgage, as interest may still be charged in the process.
The second option that is recommendable when experiencing default risks in performing a perfectly expected contract is a loan modification. This entails restructuring one or more conditions of the mortgage where the change is more or less permanent in nature; for instance, receiving a lower interest rate, extending the time taken in paying back the mortgage among others. Loan modification can be used to make changes in your monthly payment due to your change in financial status.
If you cannot come to an understanding with your lender regarding these issues, you might also, therefore, want to look at other lending programs for help. Possible other options for homeowners to obtain help in avoiding foreclosure may include, HAMP or Hardest Hit Fund if not covered by other options.
Also, one must look into the budget and effectively determine what expenses are essential during this period. It is advised to reconsider some unneeded purchases and look for the ways to decrease the expenses required to cover living. This might mean that subscription services are suspended, going out to eat less often, and trying to cut costs on things like electricity and water.
If you have other sources of funds for instance, savings, retirement funds, among others, you might also wish to look/apply these funds in order to meet your mortgage obligations till the time when you find another job. One should consider the costs and benefits and consider a financial consultant to pull through in case of recommending such resources.
In other times, you can also look for such part-time or casual employment opportunities as this would also assist in reducing the burden off your back a little bit. It may not be the best scenario but clinging to the previous job in order to cover the deficits of new job may help to offer a solutions until a new permanent job is acquired.
Note it is still very effective and beneficial to remain an active participant and remain involved with the lender at this stage. In taking measures to deal with the mortgage expenses resulting from a job loss, one can be in a position to safeguard his or her home as well as finances.
Therefore, one can say that job loss triggers financial insecurity, or the observance of the mortgage becomes more complicated. But proper consultation with your lender, researching for the available financial help, and developing a clear and realistic budgeting plan will let you to cope with this period and save your home. Also, do not lose the active position in search of help and do not give up the fight for the financial stability.
