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If I Lose My Job, What About My House Payment?

11/30/2011 07:15 AM ET

If I Lose My Job What About My House Payment - Unfortunately, there are many people who are going through this problem — they lose their employment and have no way to make their mortgage payment. Many families opted to walk away from their home because it was worth less than what they owe.

Walking away from a mortgage is never a good idea. The value today will not be the value tomorrow. Furthermore, letting your house go has long repercussions for years to come, but there are some easy ways to get a handle on this.

It doesn’t matter how old you are, or what career path you made prior to getting a mortgage, either way you can’t pay. Keep in mind that the bank only wants their money, not your property, so this be in your favor if you want to work out the financing. It might sound easy to not lose your job by getting another one, but your entire livelihood is at stake unless you have a way to make the house payment.

The first thing you need to do is call the bank right away to see what your options are. Some banks will try to refinance your loan. This will reduce your payment if there is building equity in your home.

Refinancing your house will also give you additional time to pay your new installments and to seek new employment.

The worse thing you can do is to believe time is on your side, because the lender will take action, so be ready to plan. Try to remain positive and only reflect on what options you have. Always remember this: Your finance company doesn’t want your home, they want the money, and most of them will not go through a foreclosure if you work with them.

This means that you need to find employment right away to avoid any legal action. Most banks are more receptive to people who lost their job. A foreclosure is a big deal to a financial institution, and to you, because you will lose unless you figure out a way to make good on the mortgage.

Another option is to rent out your house until you can afford to pay on it again. A lot of people have done this. Talk with your bank about refinancing. In addition, speak with a local realtor to find out if they have anyone looking for a home to rent until you can find another job.

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