There’s a lot of things we can plan for in life. We can plan trips, plan renovations, plan holidays, but sometimes you don’t have time to plan for unemployment especially when you’re locked into your mortgage. What do you do? What are some steps you can take to prevent defaulting on your family’s home? Here are a few tips & tricks.
- Review your Mortgage Protection Insurance
Mortgage Protection Insurance can offer you financial coverage if you lose your job within two years of buying your home. This coverage can include mortgage payments, taxes, home-insurance payments, and much more. Talk to your lender as soon as possible to learn more.
- Consider Utilizing your Savings
Losing your main source of income can be a major issue for you and your family’s future, so why not tap into your savings. This doesn’t mean you have to drain your savings, but if your new job search isn’t offering feasible employment or you’re in danger of defaulting on your mortgage, I highly recommend dipping into the savings. You can always rebuild your savings, but you can’t always rebuild the perfect home.
- Contact Your Lender
While this was already mentioned with your MPI, but if you haven’t already, contact your lender. Your lender is there to help you with any and all home-related inquiries, especially when it comes to financing it. If you don’t know when you’ll be able to pay your mortgage, or how much you can afford, contact your lender to discuss all the alternatives to defaulting and potentially losing your home. Your lender is your contact, don’t be afraid to reach out.
- Consider an FHA Partial Claim
Loans from the Federal Housing Administration (FHA) or Freddie Mac are all considered government agency loans. These loans offer unique flexibility compared to private loans. These organizations offer unique loans for newly unemployed home-buyers who are looking to modify their loan. Some of these loans even offer an interest-free modification. To learn more, talk to your mortgage expert today.
At Choice Mortgage Bank, Inc., we work around the clock to make sure every client is in the best financial position to secure their homes and their futures. If you’ve found yourself nearly unemployed or may be on the brink of unemployment, call us today and we can discuss ways to adjust your mortgage and reduce any risk of defaulting. Your home shouldn’t be a commodity, let us make it a stable piece of your future. Call today.