When a homeowner suffers a job loss, the most immediate fear is foreclosure. It’s natural to believe that foreclosure is imminent after a job loss; but a job loss doesn’t need to equal foreclosure. There are a few things a homeowner can do to avoid foreclosure after a job loss:
#1 – Contact you lender immediately after a job loss. Be honest with them and explain the situation to them and make it clear that you want to avoid foreclosure.
#2 – Discuss all of your options with the mortgage lender. Usually, a lender will offer a homeowner facing foreclosure three options. a) reduced mortgage payments for a few months until you find another job, b) forbearance, which basically means that you will make no payments for a specific period of time or c) a mortgage modification that will change the terms of your home loan so that your monthly mortgage payments are more affordable.
#3 – Speak with a bankruptcy attorney about your bankruptcy options. Speaking with a bankruptcy attorney as soon as possible when faced with foreclosure is a wise decision while you are working out an agreement with a mortgage lender. Because most unemployed debtors are struggling with other debts as well as fighting to avoid foreclosure, working with a bankruptcy attorney to examine your entire financial situation may be a wise decision.