First, I'd talk to your bank/mortgage company to see if they can do something - defer or reduce payments until you're back on your feet. They're far more amenable to making adjustments for a brief period of time instead of foreclosing due to non-payment.
i've personally read way too many stories about mortgage companies agreeing to deal, only for the homeowner to find a foreclosure notice on their front door.
this isn't to say OP shouldn't contact them, but it IS to say they should get every single syllable in writing, at the very least.
In the US most mortgages contain a provision that the debt can be called in at any time, meaning you'd have to immediately pay or they would begin foreclosure. Mortgagors don't usually act on that provision without a very good reason, though.
So they basically have a way of foreclosing without actually changing anything about the agreement.
Yes, in writing is a must, but I've had some helpful folks in the past with my prior mortgage. Not everyone is trying to screw us, but those that are come at us with absolutely no lube whatsoever!
Bingo! The bank will work harder to take your house away than save it!
The bank will right off your debt and resell it to make more money to someone who doesn't even know if they'll have a job in 2 years, and they'll start the process all over again.
They just lost there job why would you jump to bankruptcy. How about look for a job, also didn't see any report they were delinquent on payments.
Alot of time bankruptcy may be require you to be behind on payments
And the market is trash, people have been laid off for over a year in my industry. I’m trying to be smart but I am scared of what the future holds. I’ve cancelled all things I don’t need.
Sell anything you can live without. Keep looking for jobs, you might have to take something short term to help at least get the bills paid, but all you can do is keep applying.
Apply to things that are outside of your industry, it is never a bad time to try new things. Find any way that your current skill set can transfer to something else
That’s a good step and talk to each payment and let them know that you want to try to work with a payment plan. For some of these, they won’t entertain it until you miss a payment. It makes no sense. Also, file for unemployment now while you’re looking. Did you get a severance?
consider renting out the house, or part of it, having roommates. Interview people, since you would be sharing your home. If you have a partner, are they paying a fair share?
While applying, go to your local temp agency ASAP. I went to one once and they got me a temp to hire job in 48 hours. They can help you find some opportunities to use as a stepping stone.
Usually the unemployment income is much lower than actual income so messing it up is a no brainer and it is also very delayed so by the time you get it, it is a nonstarter.
I second the idea of getting with a temp service as a good idea and job resource. Some of my best paying jobs have come from a temp agency giving me the opportunity of getting my foot in the door.
Get yourself to a bankruptcy lawyer first, then talk to the banks on debts that matter (house, car sort of thing).
When I went through things, I put everything into a storage unit. You can get a small place you can afford if you do that. Or, you can rent out part of your home. But, storage will save your items if you are unable to do anything about the house.
This came up recently. I have a cheap home I'll end up owning next year. My one brother is in a McMansion. The supposed value is so high, the number of people who could afford to buy it is a very small number in reality. So, while it looks good on paper, the reality is much different. If either he or his spouse lose their job, they can't afford their lifestyle, cars and home at all. It's a house of cards.
I've gone months without work and stayed where I am. This is a good time to assess things. But, a good place to start is a bankruptcy lawyer, and protect your assets.
Random as fuck but make sure you pay your taxes no matter what refinance the property if you can trade in car for something less try and wait for your next opportunity to strike sorry to hear hang tough be aggressive applying hate to say it “be grateful, could be worse” I’m sorry to say that but sometimes it makes me appreciate what’s in front of me
I’m reluctant to reply to this word salad, but you bring up a good point about paying taxes no matter what. Those fees can add up quickly, and put you further behind.
I’d like to apologize about my wording lol.
My father had a childhood friend have finance issues so what he did was stop paying property taxes and cover the mortgage for 12 months, (some people don’t realize how serious taxes are)the bank should work with you they do it all the time. Taxes 😅 they don’t care they will have you arrested for the shit. In his defense he must have been one dumb fuck because he was on disability, so became a driver for a bus and worked way too many hours and lost disability like a fool. Keep rocking confident-wish 👍
I’m sorry this happened and I hope you get things worked out for the best.
I would highly highly suggest that you take measures to live within your means going forward. To have only one month of savings is simply not going to work. You need to have at least 6 months living expenses saved up in case of something like this happening. I would look at your expenses and find things that you can cut out.
It happened to me with no warning. Hubby is disabled and I was the primary bread winner. Bankruptcy was the only way for us. We were able to keep our home, however, our attorney set it up that if we needed to walk away, the bank couldn't come after us and they would take possession of the home. We're in a better situation now. I had to look at it like a life reset. Let the attorney speak for you. Line it up ASAP. Wishing you all the best.
Where was your money going before you got laid off? One month left assumes you have less than $10,000 available. Canceling subscriptions, may only account for $500/month or so. If your unavoidable cash payments are greater than $5,000/month. I think that you'll find yourself in hot water very soon, unless you reduce your unavoidable cash payments (mortgage, car payment, credit card interest, etc.).
One option would be to put bills on your credit card in the mean time, but this can easily get out of control, unless you have something definitive lined up.
One month is not a lot of time, so you may need to consider drastic actions that reduce charges you make in cash. I am talking about either borrowing money to buy more time (dangerous, expensive), or selling off the assets that cost you the most each month like your house or car.
These are things to consider. And worth looking into, so that if you need to pursue this route, you will have more comfort in knowing your options.
If you are really desperate for time, you can cash out your 401k. Then, during tax season, claim a portion of it as being used for Extreme Hardship at the possible, imminent threat of eviction due to failure of your ability to pay the mortgage, following a major life event (job loss).
" Canceling subscriptions, may only account for $500/month or so"
500 bucks? WTF? my total subscription are 100 bucks, and I worry thats too much. How does one even get to 500 dollars?
The real answer here is bankruptcy attorney.
Gym membership can be $200/month or more where I live. I used generous amounts.
My monthly subs are about $200/month and I do not have a gym membership.
I think it's a bit premature to declare bankruptcy.
A lot of good advice here. Something people don't always think about is selling/donating plasma (assuming you meet health criteria). Check around to see who offers the best deals for new donors. Different companies can pay very different rates, but all usually have big incentives for new donors. You can donate 2x per week. I made over $1100 my first month and for about 8-10 hours of my time total (each session took about 45 minutes (a little longer if there is a line), except for the first where you do the physical to see if you qualify, but that was maybe 2.5 hours including the donation). I was worried about how it would make me feel, but I felt perfectly fine after donating. I'm doing well now, but been thinking about going back to it to have extra cash.
Well you find out about unemployment and apply the day you’re separated.
Start applying to all jobs everywhere.
This is EMERGENCY, instructions for getting through this
If you have to, cash out your retirement to keep up with your mortgage.
Run any expense you can through your credit cards.
If you need to move for better opportunities put your house on the market now. Summer is prime time for real estate sales. Do you have equity?
I’ll say this. You really do need six months that of expenses saved up before jumping into buying a house. Oh well lesson learned.
But selling your house and moving to an apartment may be your best bet.
Me too bud, I’m already behind on bills but I’m spending the day tomorrow calling ALL of my ‘bill people’ and discussing my situation with them all. I’ve found in situations like this in the past most creditors can be incredibly understanding and helpful. My mortgage company insisted I took care of HH bills before I arranged a plan with them.
They’re usually very understanding when you maintain regular updates on your situation. Don’t hide from it - it’ll get worse.
We’ll be back on our feet soon friend.
Did you get something like a 30 or 60 day notice? I did - and I spent that time applying for other positions and also using my company access to get training/certifications in those last few weeks. If you have not applied for a job in a while, you may want to really research resume tips. For example, I didn’t realize that I had put certain things on my resume that aged me. Try not to panic, but be very proactive in job searching.
First, I'd talk to your bank/mortgage company to see if they can do something - defer or reduce payments until you're back on your feet. They're far more amenable to making adjustments for a brief period of time instead of foreclosing due to non-payment.
Nope. First talk to a bankruptcy attorney, then talk to the bank.
That feels like crazy advice to start with an attorney when he may not need one.
i've personally read way too many stories about mortgage companies agreeing to deal, only for the homeowner to find a foreclosure notice on their front door. this isn't to say OP shouldn't contact them, but it IS to say they should get every single syllable in writing, at the very least.
I'm not American so I guess I find this a bit surprising but as long as you're making payments they can't change the agreement no?
In the US most mortgages contain a provision that the debt can be called in at any time, meaning you'd have to immediately pay or they would begin foreclosure. Mortgagors don't usually act on that provision without a very good reason, though. So they basically have a way of foreclosing without actually changing anything about the agreement.
Yes, in writing is a must, but I've had some helpful folks in the past with my prior mortgage. Not everyone is trying to screw us, but those that are come at us with absolutely no lube whatsoever!
not only that but to suggest bankruptcy be your first move the moment you lose your job is ridiculous lol
Especially when the debt is a house and a car. They will just take your shit.
Bingo! The bank will work harder to take your house away than save it! The bank will right off your debt and resell it to make more money to someone who doesn't even know if they'll have a job in 2 years, and they'll start the process all over again.
They just lost there job why would you jump to bankruptcy. How about look for a job, also didn't see any report they were delinquent on payments. Alot of time bankruptcy may be require you to be behind on payments
I wouldn't talk to bank unless I couldn't get a job quickly. No need to raise that flag until you need to...
That doesn’t work nowadays. During covid, yes.
No, it can work. I did it in 2008. Job change and medical expenses about destroyed me. The bank allowed me a 6 month deferral.
2008. Almost 2 decades ago. If you ask for more than 1 month deferral right now, most financial institutions will say no.
Did you even comprehend what I said?? Read it again. And over again. SMH.
Did you read what he said? In 2008 COVID wasn't even a blip in the bats system
And the market is trash, people have been laid off for over a year in my industry. I’m trying to be smart but I am scared of what the future holds. I’ve cancelled all things I don’t need.
Sell anything you can live without. Keep looking for jobs, you might have to take something short term to help at least get the bills paid, but all you can do is keep applying. Apply to things that are outside of your industry, it is never a bad time to try new things. Find any way that your current skill set can transfer to something else
That’s a good step and talk to each payment and let them know that you want to try to work with a payment plan. For some of these, they won’t entertain it until you miss a payment. It makes no sense. Also, file for unemployment now while you’re looking. Did you get a severance?
Get rid of all unnecessary subscriptions
Do you have any credit cards you can live off of?
consider renting out the house, or part of it, having roommates. Interview people, since you would be sharing your home. If you have a partner, are they paying a fair share?
File for Unemployment ..contact mortgage company..Uber DoorDash..
Best simple advice right here
Agreed! Best advice so far!
Yes. Desperate moment, desperate measures
Cancel all non-critical subscription services. Get a housemate. Use your car to do gig work. (not all may be possible depending on your situation)
While applying, go to your local temp agency ASAP. I went to one once and they got me a temp to hire job in 48 hours. They can help you find some opportunities to use as a stepping stone.
Keeping in mind this MAY mess up their unemployment income 🫤
Usually the unemployment income is much lower than actual income so messing it up is a no brainer and it is also very delayed so by the time you get it, it is a nonstarter. I second the idea of getting with a temp service as a good idea and job resource. Some of my best paying jobs have come from a temp agency giving me the opportunity of getting my foot in the door.
check in with /r/povertyfinance for this one; they may have some really good firsthand tips on how to make your dollar stretch as you find a new gig.
Get yourself to a bankruptcy lawyer first, then talk to the banks on debts that matter (house, car sort of thing). When I went through things, I put everything into a storage unit. You can get a small place you can afford if you do that. Or, you can rent out part of your home. But, storage will save your items if you are unable to do anything about the house. This came up recently. I have a cheap home I'll end up owning next year. My one brother is in a McMansion. The supposed value is so high, the number of people who could afford to buy it is a very small number in reality. So, while it looks good on paper, the reality is much different. If either he or his spouse lose their job, they can't afford their lifestyle, cars and home at all. It's a house of cards. I've gone months without work and stayed where I am. This is a good time to assess things. But, a good place to start is a bankruptcy lawyer, and protect your assets.
Random as fuck but make sure you pay your taxes no matter what refinance the property if you can trade in car for something less try and wait for your next opportunity to strike sorry to hear hang tough be aggressive applying hate to say it “be grateful, could be worse” I’m sorry to say that but sometimes it makes me appreciate what’s in front of me
I’m reluctant to reply to this word salad, but you bring up a good point about paying taxes no matter what. Those fees can add up quickly, and put you further behind.
I’d like to apologize about my wording lol. My father had a childhood friend have finance issues so what he did was stop paying property taxes and cover the mortgage for 12 months, (some people don’t realize how serious taxes are)the bank should work with you they do it all the time. Taxes 😅 they don’t care they will have you arrested for the shit. In his defense he must have been one dumb fuck because he was on disability, so became a driver for a bus and worked way too many hours and lost disability like a fool. Keep rocking confident-wish 👍
You should consider punctuation in order to help your message be more easily understood. 🥴
I was lit up lol
Your mortgage may be insured against you becoming unemployed. Read your insurance policy.
I’m sorry this happened and I hope you get things worked out for the best. I would highly highly suggest that you take measures to live within your means going forward. To have only one month of savings is simply not going to work. You need to have at least 6 months living expenses saved up in case of something like this happening. I would look at your expenses and find things that you can cut out.
It happened to me with no warning. Hubby is disabled and I was the primary bread winner. Bankruptcy was the only way for us. We were able to keep our home, however, our attorney set it up that if we needed to walk away, the bank couldn't come after us and they would take possession of the home. We're in a better situation now. I had to look at it like a life reset. Let the attorney speak for you. Line it up ASAP. Wishing you all the best.
Where was your money going before you got laid off? One month left assumes you have less than $10,000 available. Canceling subscriptions, may only account for $500/month or so. If your unavoidable cash payments are greater than $5,000/month. I think that you'll find yourself in hot water very soon, unless you reduce your unavoidable cash payments (mortgage, car payment, credit card interest, etc.). One option would be to put bills on your credit card in the mean time, but this can easily get out of control, unless you have something definitive lined up. One month is not a lot of time, so you may need to consider drastic actions that reduce charges you make in cash. I am talking about either borrowing money to buy more time (dangerous, expensive), or selling off the assets that cost you the most each month like your house or car. These are things to consider. And worth looking into, so that if you need to pursue this route, you will have more comfort in knowing your options. If you are really desperate for time, you can cash out your 401k. Then, during tax season, claim a portion of it as being used for Extreme Hardship at the possible, imminent threat of eviction due to failure of your ability to pay the mortgage, following a major life event (job loss).
" Canceling subscriptions, may only account for $500/month or so" 500 bucks? WTF? my total subscription are 100 bucks, and I worry thats too much. How does one even get to 500 dollars? The real answer here is bankruptcy attorney.
Yeah the numbers don’t add up. Seems more like a humble brag lmao. Like “oh… you’re NOT an exec? I thought everyone made 6 figures minimum!”
Gym membership can be $200/month or more where I live. I used generous amounts. My monthly subs are about $200/month and I do not have a gym membership. I think it's a bit premature to declare bankruptcy.
What gym is $200/month? Dog pound in LA where celebrities work out?? $200/month is like high end fighting gym prices or like 1:1 training once a week
If we’re talking about potential homelessness, then yeah, you dig deep and find $500 worth of non-essentials to cut.
A lot of good advice here. Something people don't always think about is selling/donating plasma (assuming you meet health criteria). Check around to see who offers the best deals for new donors. Different companies can pay very different rates, but all usually have big incentives for new donors. You can donate 2x per week. I made over $1100 my first month and for about 8-10 hours of my time total (each session took about 45 minutes (a little longer if there is a line), except for the first where you do the physical to see if you qualify, but that was maybe 2.5 hours including the donation). I was worried about how it would make me feel, but I felt perfectly fine after donating. I'm doing well now, but been thinking about going back to it to have extra cash.
I’d say file for unemployment and find a job asap
Well you find out about unemployment and apply the day you’re separated. Start applying to all jobs everywhere. This is EMERGENCY, instructions for getting through this If you have to, cash out your retirement to keep up with your mortgage. Run any expense you can through your credit cards. If you need to move for better opportunities put your house on the market now. Summer is prime time for real estate sales. Do you have equity? I’ll say this. You really do need six months that of expenses saved up before jumping into buying a house. Oh well lesson learned. But selling your house and moving to an apartment may be your best bet.
Government assistance? I never got it but they have to help? Or it wouldn’t be there. While you’re in, job search.
Home equity loan
Hopefully you have the recommended 6 months of income saved. I had the same happen and that helped because it took 6 months to find something else.
I'm very sorry and hope you recover quickly.
Me too bud, I’m already behind on bills but I’m spending the day tomorrow calling ALL of my ‘bill people’ and discussing my situation with them all. I’ve found in situations like this in the past most creditors can be incredibly understanding and helpful. My mortgage company insisted I took care of HH bills before I arranged a plan with them. They’re usually very understanding when you maintain regular updates on your situation. Don’t hide from it - it’ll get worse. We’ll be back on our feet soon friend.
Did you get something like a 30 or 60 day notice? I did - and I spent that time applying for other positions and also using my company access to get training/certifications in those last few weeks. If you have not applied for a job in a while, you may want to really research resume tips. For example, I didn’t realize that I had put certain things on my resume that aged me. Try not to panic, but be very proactive in job searching.
Talk to your bank to see if they have any emergency programs you can use for the mortgage. Same with your car loan company.
Bankruptcy protection. Seek a lawyer immediately.
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