How To Keep Your Home If You Lose Your Job
Losing your job can be extremely stressful. When it happens, you don’t need the additional worry of wondering if you’ll be able to keep your home. Fortunately, there are ways to pay your mortgage payments even when you’re struggling with unemployment. Mortgage-assistance programs are set in place for situations just like this. First, there are important steps you need to take.
Organize Your Financial Information
After taking an assessment of all of your monthly bills and expenses, order them according to importance. Your mortgage payment should be at the top of your list. Decide how much of your savings you can use each month, along with any monthly income, and judge from there how much you can allocate toward paying your mortgage each month. Keep track of all your financial information, including all bills and credit card statements. Your mortgage lender may need access to this information as well.
Talk To Your Mortgage Lender
Call your mortgage lender as soon as possible and explain the situation. Although your lender is not obligated to provide a lower mortgage rate, you are perfectly within your rights to request one. There are several ways your lender can help relieve the financial burden. These include:
- Lowering your interest rate
- Providing a suspension of your payments
- Changing the terms of your loan
- Forgiving some of your principal balance.
Search For Assistance Programs
You may also be able to get help with your mortgage through a federal or state program. The Hardest Hit Fund (HHF), designed to help states experiencing a high unemployment rate as a result of the economic crisis, provides financial assistance to homeowners in several states, including Arizona.
The Home Affordable Unemployment Program (UP) is another government program that seeks to make homes affordable even during times of unemployment. If you qualify, UP can reduce your payments or provide you a forbearance period, completely suspending payments for a year or more.
You can find more information about your eligibility for these programs online, or ask your mortgage lender about your options. Stay optimistic–there are ways to get help with your mortgage while you look for a new job. We know how important it is to keep your home.