What would happen to my mortgage if I lost my job

What Could Happen To My Mortgage If I Lose My Job?

What would happen to my mortgage if I lost my job

If you have a mortgage and have recently lost your job, you may be worried about what is going to happen next. It is important that you know what will happen to your mortgage after you lose your job and what steps you can take to make this better. There are a number of steps that you can take against everything that happens to your mortgage.

Look At Your Insurance

It is important that you take a look at your insurance policies when considering what will happen to your mortgage. If you have planned ahead, you might have taken out mortgage protection insurance. If you have taken out this insurance, the policy will cover the mortgage payments, home-insurance payments and the taxes. Of course, there are a few terms and conditions that you need to know about.

Mortgage protection insurance will generally cover the 2 years after you have bought the house. The cover will also only be applicable if the mortgage costs are within a specified limit. The protection offered by the policy is also not unlimited and will generally last for 6 months. Mortgage protection insurance is something that you should look into, but it is a short-term solution.

Contact Your Mortgage Lender!

If it looks like you will not be able to pay your mortgage, you need to contact your lender. It is important that you do this as soon as possible and not wait until your mortgage is delinquent. When you contact the lender, you may be able to set up a payment plan which helps you avoid foreclosure. Once you have spoken to the lender, you will need to send them a written hardship letter which describes your situation. In the letter, you can explain your job loss and offer a timeline for how and when you will be able to make full payments again.

Once the lender has looked at the hardship letter, they could offer you a forbearance program. This program could suspend your mortgage payments or lower them for a set period of time. It is important to note that not all people will qualify for these programs and if you do not, you should ask your lender about any other options.

Turn To The FHA Or Other Government Agencies

If you have a mortgage that is guaranteed or insured by a government agency, you could qualify for mortgage assistance. These agencies will generally offer a number of different programs that can help unemployed homeowners with their mortgage payments. One of these programs offers an interest-free loan from the government that you will not have to repay until you have either sold your home or repaid your mortgage.

If you lose your job, you will worry about what this means for your mortgage repayments. If you have insurance and are within the timeframe for the policy, you can claim this for around 6 months. However, it is recommended that you contact your mortgage lender and provide a written letter of hardship and they will offer programs that could help.

Thank you Mortgage Brokers Northern Beaches for your guidance in this.