What to do if you have lost your job and can’t pay your mortgage

Due  to the unstable economic situation that we have now, more and more people are losing their jobs which made them unable to pay their financial responsibilities such as their mortgage payments.  I am aware of the fact that people who lost their jobs are looking for some advices and tips that they could follow in order to get back on their feet and be able to cope up with their mortgage payments. That is the reason why I created this article. I hope this will help you.

 

In Realty business, the very first thing to do when you lost your job is to approach your lender. Your lender is the one to whom you are paying the mortgage payments which means he is your very first concern and if you can talk to him and negotiate the situation, he might be able to help you by giving you more time to look for a way to pay your mortgage. Remember, if you don’t want your home to go into foreclosure, so does your lender. Because every time a home goes into a foreclosure the lender loses $50,000.

Remember, it is better to do this as soon as you can for the Nashville TN Realty transactions because what usually happen is that when homeowners faced the same situation as yours, they failed to act quickly. They just allowed the problem to overwhelm them and that wasn’t a smart move. When you know you are in a messed up situation, you should minimize the damages by acting quickly. And approaching your lender is the start. By approaching your lender, he might give you the time you need to look for another job before he requires you to continue paying your mortgage. You can give us a visit at our site for more helpful ideas http://nashvillerealestateadviser.com.

Typically, when a borrower like you loses his job, the lender helps by giving a forbearance agreement combined with a repayment plan. If you are not familiar with a forbearance agreement, it is where the lender suspends or reduces the payments for a specified time frame.

Usually less than 6 months. After that time, it is where the repayment plan sets in. In a repayment plan, as a borrower, you agree to give the regular payment plus the additional agreed-upon amount with your lender to cover all the missed payments you had during the forbearance period.

After your negotiation with your lender, you should start documenting your loss and present it to your lender to follow up the negotiation. This will position you to demonstrate to the lender that your inability to pay is involuntary, should this be necessary later on.

Your next step is to estimate home equity. It is simply what you could sell your home for net of sales commissions minus the remaining of your home loan. Mortgage payments. Doing this will help you make and develop a strategy to deal with your lender.

What you should do next is to identify whether your financial difficulty is temporary or permanent. And finally, you should start looking for a new job or start a new income generating activities.