Unexpected layoff can be extremely stressful if you have mortgage payments and other expenses that have to be taken care of every month. Home loans are given by lenders to earn interest on the extended amount instead of searching for buyers to sell foreclosed property. They will be likely to help during your unemployment period to find a feasible payment method to prevent the property being listed among foreclosed houses for sale in Las Vegas.
Several state governments have set up their own assistance procedures to help people receiving unemployment benefits manage their monthly mortgage payments. The best option would be to contact a HUD-certified counseling agency for help.
Here are few commonly used procedures by banks to help unemployed customers manage their mortgage payments.
Request lender to accept a co-signer
If your spouse or sibling with a steady income and good credit score is willing to accept responsibility for paying the mortgage and become a guarantor of the loan, then you can request an extension. The decision to accept the co-signer and refinance the loan is entirely dependent on the lender and your credit rating with them.
Homeowners who are likely to default on mortgage payments due to unemployment can apply for loan modifications if their total debt exceeds 55 percent of gross income. This is done after lender verifies income documents and is satisfied with your income and payment capacity. They will then reduce mortgage payments to 31 percent or (less depending on internal bank regulations) of your gross income.
Reduce cash expenses
The best way to manage important payments like mortgage is to reduce cash payments for regular expenses like phone, television, insurance and internet. During tough times, opt for cost saving measures like eating at home and cutting down on unnecessary travel.
Cash Home Buyers
To avoid foreclosure on your dream property during unemployment, talk to us! We can buy your home for cash in less than 2 weeks. Call our advisors, and we’ll send you a quote quickly. If you are happy with the offer, we’ll close in 2 weeks or less.