Your Job and Your Home Mortgage
During this recession, no one is safe from layoffs. You can be the next victim. Many companies have been losing from the global economic downturn that started from the failure of the U.S. home mortgage market in 2007.
The only thing you and I can do is to prepare for adverse eventualities, such as job loss. Financial planners have always advised clients to save at least three months worth of cash in a financial facility that can easily be accessed. Ensure also that you choose a facility that is guaranteed by the U.S. government, since even large corporations are no longer safe from bankruptcy.
As you continue to pay your home mortgage payments, talk to your mortgage lender about your equity and inquire about its mortgage and home equity policies. Be sure that you have access to your equity at all times. There have been many instances where homes became foreclosed properties despite homeowners’ relatively large home equities.
When times really get hard, the easiest option is to miss home mortgage payments. But as long as you still have your job, try your best to live frugally and buy only the things that you really need such as food. This way, you are still able to pay your mortgage amortization and set aside some money for use if more difficult times come.
If you have lost your job and you do not have enough savings, it is even easier to decide to just stop home mortgage payments. But if you believe that you can get employment in several weeks, you can use other types of credit to continue your payments. The most important thing is not to accumulate three months of missed payments, which typically prompt home mortgage banks to start foreclosure proceedings. You can always recover once you have your next job. If you allow your home to be foreclosed, it would be difficult for you to get another home loan mortgage once you recover and want to start again.
