Know Your Options
Job Loss & Your Home
Losing your income is stressful. But you have options to protect your home, your credit, and your future.
Know Your Options
What to Do First
The most important step is not to panic. Mortgage lenders have programs designed for exactly this situation. Here is what you should explore, in order.
Contact Your Lender Immediately
Call your mortgage servicer the day you know your income has changed. Ask about forbearance, which allows you to pause payments temporarily. Under federal guidelines, many lenders offer 3 to 6 months of forbearance without penalty.
Explore Loan Modification
If your income reduction is permanent, a loan modification can lower your monthly payment by extending the loan term, reducing the interest rate, or deferring a portion of the principal.
Consider Selling Before It Is Too Late
If you cannot afford the payments even after modification, selling now while you still have equity and good credit is far better than waiting until foreclosure. You can walk away with cash in hand and a clean credit record.
Short Sale as a Last Resort
If you owe more than the home is worth, a short sale allows you to sell for less than the mortgage balance. It is less damaging to your credit than a foreclosure and allows you to move on sooner.
Do not wait until the notices arrive.
The earlier you explore your options, the more choices you have. As a Certified Distressed Property Expert (CDPE), I can help you understand every path.
You Are Not Alone in This
I have helped homeowners through job loss, medical emergencies, and financial hardship. The first step is picking up the phone. Let me help you understand your options.
Thank you.
I will be in touch shortly to discuss your downsizing goals.
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