How to Get Help With Your Mortgage if You Are Unemployed

Asking for assistance early can help save your home while you look for work.

You can find help to avoid falling behind on your mortgage while unemployed. Ask for assistance as soon as possible to avoid an emergency. That could mean asking for help even while you are employed, if you know a layoff is likely. Being proactive will impress your lender and possibly provide a backup plan that can give you peace of mind.

Instructions

1. Call your lender. Explain your situation and ask if the bank has any hardship programs that fit your circumstances. Unemployment can obviously lead to foreclosure, and many banks have foreclosure prevention programs, according to the Federal Deposit Insurance Corp. Your bank may allow you to make smaller payments for a while or skip them entirely while you look for work. You can generally expect your bank to offer help for about three months, according to Hope Now, a nonprofit agency specializing in foreclosure prevention.

2. Contact a Consumer Credit Counseling Services (CCCS) agency in your area (see References). These nonprofit organizations are listed in the telephone book. Make an appointment to discuss your situation. A counselor can help you create a new budget and make calls on your behalf to all your lenders, asking for smaller payments. For example, some of your credit card payments could be reduced for up to a year, freeing up money to pay your mortgage.

3. Contact Hope Now or a similar organization focused on foreclosure prevention. This could be a valuable option if you're uncomfortable about calling your bank or mortgage company or would rather not visit a CCCS agency. Hope Now maintains a free hot line staffed by credit counselors approved by the U.S. Department of Housing and Urban Development. The counselors will discuss your situation and make recommendations. Call Hope Now at 888-995-4673 or visit the website for more information (see References).

4. Ask family and friends and even your church for help if you're in an emergency and can't meet your mortgage payments.

References

• Consumer Credit Counseling Services: Personal Financial Counseling
• Federal Deposit Insurance Corp.: Is Foreclosure Knocking?
• Hope Now: Mortgage Assistance