Lost your job in the Triad? What to do about your mortgage

Nathan Hepler
Nathan Hepler
Published on August 27, 2017

 

It happens to the best of us – one day you’re gainfully employed and the next day you’re not. Despite the fact that the nation’s unemployment rate is at a 17-year low and job growth is strong, layoffs are still occurring.

While unemployment rates have fallen in many other cities across the nation, in a dozen or so states they have actually gone up. From public schools laying off teachers to states laying off workers, if you work for someone else there is no guarantee that you won’t find yourself unemployed, so what should you expect if you have Lost your job in the Triad?

If you find yourself among the jobless, now is not the time to panic. Read on for some tips to keep in mind while you make a plan on the next steps to take. Dont let your family down with letting your home go! 

Get some advice

The U.S. Department of Housing and Urban Development (HUD) offers no-cost housing counselors to help walk you through your options. You can find one in your area on HUD’s website.

If you’ve waited too long and you’re facing foreclosure, contact an attorney. If you are income-qualified, you may be entitled to free legal services. Find out by contacting your state’s legal aid department. You’ll find the contact information for each state’s legal aid office, here.

Be upfront

The first step is to know exactly where you stand financially. Go over all of your monthly bills to determine how much you owe and to figure out ways to cut your budget.

Next, determine whether your situation is temporary or if there’s a chance that your unemployment may be long-term. With this information, you are ready to call your mortgage servicer.

Don’t put this one off. Yes, it’s uncomfortable. It may even be embarrassing, but one of the worst things you can do is crawl into that hole of procrastination that is beckoning. Be proactive.

If you expect to be back at work in the near future, ask the servicer for a forbearance. This is an agreement wherein the lender promises not to exercise the legal right to collect the debt or to foreclose due to non-payment. You will need to agree to the servicer’s plan on how you will get current on the loan and you’ll typically be given a time limit.

In a two-worker household, you may be able to make smaller payments. If this is the case, ask the servicer for a loan extension. While the advantage of this scenario is obvious (your payments will be reduced), the loan will end up costing you more in the long run.

Some servicers will allow the borrower to pay only the interest on the mortgage until he or she is back in the money.

Not all servicers are willing to make these concessions, but they are, by law, required to discuss your situation with you and the earlier you notify them, the more amenable they may be to your proposals.

Look at your Insurance!!

it’s true — What if your insurance policy could cover your mortgage payments if you become unemployed? If you planned in advance,  (most dont) you might have insured yourself against going through unemployment with a mortgage-protection insurance program. One example of a mortgage-protection insurance program is  thru Genworth Financial’s Involuntary Unemployment Insurance plan — which is offered for free with many of its products.

This is how mortgage protection insurance works is easy to understand. If you lose your job within a specified time after you buy your house — typically, two years — mortgage protection insurance will cover you for the full amount of:

  • Mortgage Monthly payments
  • Property Taxes
  • Home-insurance monthly payments

You’ll receive this coverage as long as your mortgage costs are within the specified insurance limit. This particular insurance covers you for a limited time period — six months — so it won’t cover all of your mortgage payments if you haven’t found employment by the end of that window. Since insurance doesn’t pay your mortgage indefinitely, it’s crucial that you consider it a short-term solution. So no it wont pay your mortgage off! Or pay your mortgage payments until you find a new Career!  

Get help from the government

 Not my favorite way : Only if your in need and Lost your job in the Triad:Although the Home Affordable Modification Program (HAMP) expired last year, the Home Affordability Refinance Program (HARP) is still in effect, but only until the end of September, 2017. You may be eligible for this program if the following applies:

You are up-to-date on your mortgage payments and have no late payments (30 days or longer) within the past six months and have no more than one within the past year. Lost your job in the Triad?  Don’t be too good to get help if your family needs it! Don’t give up on your Mortgage!    Don’t be too good to get help if your family needs it! Don’t give up on your Mortgage!

  • Your loan is owned by Freddie Mac or Fannie Mae.
  • You obtained your mortgage before May 31, 2009.
  • Your loan-to-value ratio is greater than 80 percent.

You can find out if your loan is owned by Fannie Mae, here and click here to find out if Freddie Mac owns your loan. Then, calculate your loan-to-value ratio using Fannie Mae’s calculator. Do some research this could take a while. Call your lender first to find out what they have to offer.

Fannie Mae and Freddie Max will offer the new Flex Modification foreclosure prevention program, which kicks into effect on October 1 of this year.

The program will provide a 20 percent reduction in mortgage payments to those who qualify. You may qualify even if you’re 60 days delinquent on your loan but it is also an option for those who are current.

Again, this program is limited to loans owned by Freddie and Fannie.

Although asking for help may be uncomfortable, losing your home is worse. Seek help right away if you find yourself unemployed and unable to make your house payments. 

 So if you or someone in your family have “Lost your job in the Triad?” first plan, second take action but educate yourself fist, there are a number of places in the Triad that may be hiring while this is being written but may not be hiring tomorrow! Get your name out there, brush up on your Resume and you will land a better Career than before! In all things covered here whatever you do, communicate with your lender, and dont just let your mortgage go without attention!

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