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Preventing foreclosure after a job loss

On Behalf of | Mar 31, 2020 | Firm News

When you have a mortgage to pay, dealing with the loss of a job can be extremely stressful. When prioritizing your finances, you will, of course, need to buy food and gas before thinking of other things. After making sure you have enough of the basic essentials, you will then need to pay your housing and associated bills.

If you do not have any income currently due to your job loss, you may simply not have the funds to pay your mortgage. If you ignore your mortgage obligations, you could quickly face foreclosure proceedings. That’s why it’s important that you take action as soon as you realize that you may encounter difficulties in paying your mortgage. The following are some ways that you can help to prevent foreclosure after a job loss.

Take immediate action by contacting your lender

Get in touch with your lender as soon as there is a problem. Your lender will do everything they can to help you get through this period of unemployment, and they may even grant you a holiday from your repayment obligations until you get back on your feet.

Start living frugally

If you are used to eating out several times per week and spending money on unnecessary items, now is the time to start reflecting on your habits. If you can live frugally until you are able to get a new job, you may be able to use your savings to continue paying your mortgage.

Use your assets

If you have assets that are of considerable value but unnecessary, you may want to consider selling them so that you can improve your cash flow for the coming months. For example, if you have an additional car or jewelry that could generate enough funds to pay your mortgage for several months, you may want to consider selling them.

Consider bankruptcy

Bankruptcy puts a halt on foreclosure proceedings. If your debts have accumulated considerably, filing for bankruptcy may be the right choice for you.

If you have recently become unemployed and you are worried about your financial future, make sure to invest time now into putting in place the appropriate preventative measures.