Foreclosure filings were reported on 191,925 properties across the United States in July, according to online foreclosure company RealtyTrac. At the same time, the nation’s unemployment rate remained above eight percent during the month. Are the two unrelated? Certainly not. If you are a struggling homeowner, then, you might be shouting: “Help me find a job before I lose my home!”
The Foreclosure Crisis
Ever since the economy’s downturn began, homeowners have been losing their residences to foreclosure in record-setting numbers. In fact, RealtyTrac reported that foreclosure starts jumped in July for the third straight month.
And there doesn’t appear to be an end to this problem in sight. It’s simply a challenge for unemployed homeowners to pay their mortgage bills on time each month. And federal programs designed to help owners modify their mortgage loans so that they’ll pay less each month haven’t provided nearly enough relief to the country’s struggling homeowners.
Expect, then, the nation’s housing foreclosure crisis to continue.
If you, because you can’t find a job, are struggling to pay your mortgage payments on time, you might be able to find financial relief through a mortgage modification. In a modification, your mortgage lender agrees to lower your monthly payment. Lenders can do this in one of several ways: They can lower the interest rate on your loan, restructure your loan’s terms, or forgive a portion of your loan’s balance.
You can seek a mortgage modification by calling your mortgage lender. Make sure to tell your lender that you are struggling to pay your home loan and that you are worried about eventually losing your home to foreclosure. Your lender might be willing to work with you to make sure that you don’t lose your residence.
The Short Sale
If you’ve scoured the best employment sites, practiced your interview tips and strategies, and honed your networking skills but still can’t find a new job, you might also consider a short sale as a way to get away from your too-high monthly mortgage payments.
In a short sale, your mortgage lender agrees to allow you to sell your home for less than what you owe on your mortgage loan. This allows you to set a lower asking price, which, hopefully will result in a sale that’s a quick one.
Lenders don’t have to accept a short-sale offer. So selling a home in this process can prove challenging. But for some homeowners, it’s a better option than losing a home to foreclosure.
If you need help to speed up your job search, whether you’re struggling with your mortgage payments or not, sign up for our Get Hired Boot Camp. We can provide you with the tips you need to navigate today’s challenging jobs market.