3 months ago my husband and I bought our first house, it wasn’t a very expensive house (about 175,000) and our payments are very reasonable ( about 1300 a month) we were thrilled, we love our home.
Well last week my husband’s supervisor held a meeting telling everyone the department needed to cut costs. Several days later she charged my husband with a HIPAA violation (he works at a hospital, it’s a long story, but my husband was told by his manager that he could compare an MRI and an EEG for educational purposes to understand physical causes of seizures, now because he cross referenced he’s being charged. If he is fired we WILL be appealing it.)
Anyway we’re scared to death that he will be fired. We don’t want to lose our home. We have excellent credit. Our lender is Bank of America. Do you think that there is anything they might be willing to do to help us keep our home? If my husband loses his job and we contest it I think that we’ll probably qualify for 1800 dollars a month unemployment(at least that was the impression that we got when we spoke with the unemployment office). If we don’t we do have a 10,000 emergency fund. But we’re really worried about not having the funds to pay our mortgage. Can anyone help us or give us advice? We’re worried sick.
Thanks
We actually have very good credit. We put 8% down when we bought our house. My husband makes about 50k a year, and our interest rate is set at 5%. The unemployment office said that if we qualified for unemployment we would qualify for the highest amount which is 1800 a month. That is where I got that number. We have a 10,000 dollar emergency fund. I am a stay at home mom with almost no education. It would cost more to put my baby in daycare than I would be able to make working. I also have a severe pain condition that would make it very difficult for me to hold a job.
February 8th, 2010 at 2:25 pm
What about your job? If you don’t have one, get one urgently. You need a minimum of two incomes into your household.
Do not tip your hand too soon about the possible job loss as it only upsets everyone to no real purpose. Your mortgage is so new that you really have no track record, and the new mortgage takes a whack out of your credit rating, too. So your credit probably is not as great as you think it is, or as it was when you applied for the mortgage. And no mortgage holder is going to negotiate anything at this point. After at least a couple of years of on-time payments, if you then fell behind, they might renegotiate the payment schedule. Be forwarned, however, that most renegotiated mortgages end up going to foreclosure anyway – within 6 – 10 months, 75% of borrowers end up back in trouble again. So renegotiation is proving to be useless in most cases.
Slash your spending. Pay off all debts & bills. Beef up your savings. Get another income into your household, especially if you do not have a job. Do NOT undertake any new obligations or expenses! With your savings and unemployment insurance, you should be able to pay your mortgage for a year. And with a second job/income in the household, you should be able to survive about two years even if your husband’s job ends badly and it takes time for him to get another job.
February 8th, 2010 at 2:25 pm
Do not call lender till you are sure he is out of work, no sense tipping your hand too soon.
You could get a job or two. The lender will not be willing to negotiate since your loan is too new.
February 8th, 2010 at 2:25 pm
Holy Crap! 1300 a month for a 175 house? Let me guess, bad credit, no savings, and no money down, right?
And you think you’re going to get 1800 a month from unemployment? And no, BoA has the worst reputation out there. They will tell you the best they will do is a short sale on the condition that you sign a commitment to pay the difference. That’s right, you’ll be paying off that house for years and you won’t even have it anymore. What a deal! For the banks. The best thing you can do then is bankruptcy and without a house, why not, right?
February 8th, 2010 at 2:25 pm
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