Keeping Your Home in the Event That You’re Laid Off

Keeping your home in the event that you're laid off is almost impossible to believe.  However, it may be possible with the right strategy.  When one finds out that they are being laid off, few words can hurt as much - especially today, when work is so hard to come by.  The loss of a job for a homeowner can be even worse.  When the homeowner is the primary wage earner, this can severely hamper one's budget.  In a household where there is only one breadwinner, a zero income will completely devastate a family.

In the event of a job loss, a rainy day fund can help you keep your home.  However, crafting a plan early on about how to get through rough patches like this is even more important.  More and more homeowners are facing this very nightmare today. 

It was once recommended to have three to six months of income in your rainy day fund.  Now it is recommended to have at least eight to twelve months of income standing by.  There are also government programs that are available to help today's homeowners before they foreclose on their homes.  All they have to do is ask for help. 

One of the best options in the most extreme cases is to cut your losses early and sell your home by pursuing a short sale to sell it faster.  Whatever you choose to do, it is very important to contact your mortgage lender as soon as possible and let them know of your dilemma before you get in over your head and behind on your payments. 

Early and honest communication is the most beneficial way to get the help and funding you need to keep your home in the event you lose your job.  If your information is found to be false during the verification process, this will only slow down the process and everything will have to be started over again.

The Home Affordable Modification Program has received the most press this year.  This program lowers your monthly payments based on your debt-to-income ratio.  All borrowers will have to complete a three-month trial period, successfully, before the modification can be finalized.  Many are still confused about who is eligible, but this can be easily explained by a real estate or mortgage professional. 

During the process of getting the help you need, be wary of others that say they can help you for a fee.  These programs that are set up to help homeowners in trouble are completely free.  Therefore, don't let someone try to take your money.

Realtors  ~  Jackson, Mississippi Real Estate

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