Home Owners

Get Help - Finances and Legal Matters

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You just lost your job? Worried about paying your mortgage? The following information is being provided to you as a resource to help you get through this difficult time.

I have lost my job and I have a house payment to make.

The first thing to do is review your financial situation. Like most of us your house payment is a large part of your monthly budget. If you have the resources to keep making your house payment you should do the best you can to pay it.

If I am unable to make my payment what should I do.

Many lenders suggest that you notify them immediately if you will be unable to make your payment. Most lenders want to keep you as a customer and will tell you what is necessary to be able to stay in your home. The government has requested that lenders consider doing a loan modification if their customer cannot make their full house payment anymore. This program is voluntary and each lender can determine how it is used.

What should I do if I am unable to pay my current mortgage amount.

You may have to consider one of these options.

The U.S. Treasury Department recently announced details of the Making Home Affordable program.

This program will allow eligible borrowers to refinance or modify their mortgage loans, resulting in lowering your home mortgage payment.

1. Refinance – You may be eligible for a Making Home Affordable refinance if all of the information below applies to you.

  • You have a Freddie Mac or Fannie Mae loan. If you are not quite sure if you have a Freddie Mac mortgage you can call Freddie Mac at 800-Freddie (373-3343), 8 am to 8 pm EST, or visit www. freddiemac.com/avoidforeclosure. You can call Fannie Mae at 800-7FANNIE (732-6643), 8 am to 8pm EST, or visit www.fanniemae.com/homeaffordable.
  • You have not been 30 or more days late on your mortgage payment in the past 12 months.
  • You believe the amount you owe on your first mortgage is about the same or less than the current value of your home.

2. Loan Modification – You may be eligible for a Making Home Affordable loan modification if all the information below applies to you.

  • You occupy the home as your primary residence.
  • The amount you owe on your first mortgage is less than or equal to $729,750.
  • You are already delinquent in your payments or you are having a difficult time paying your mortgage, perhaps due to a significant increase in your monthly payment, a reduction in income, or hardship that has increased your expenses.
  • You obtained your current mortgage before January 1,2009.


If you do not qualify to refinance to have your loan modified you may have to consider these.

  • Short Sale
A short sale is a transaction in which your current lender agrees to accept less money than you currently owe on your mortgage. In some cases your lender may require you to make arrangements to pay the short fall (difference) between the amount you owe and the actual amount of house sale. You may also have a home equity loan, second or third mortgage that the lender (lenders) have to agree to allow a short sale.
  • Foreclosure
Mortgage foreclosure is the process a bank or mortgage company uses to take back ownership of real estate when the homeowner hasn't complied with the mortgage agreement. Most often, that simply means that the homeowner couldn't keep up the mortgage payments.

Now that you have read about Home Owners, may we suggest that you take the next step and check out What is Foreclosure. It is important to us that we are able to help people as they recover and prosper after job loss, so please contact us with suggestions, corrections, and even your personal experiences. If you found this article or video to be helpful, we'd love for you to share it with a friend. Also, be sure to check out all of the amazing resources for your career transition in the ILostMyJob.com Book Store!


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