“My husband got laid off and we are worried about making our mortgage payment. I don’t think we can make it very long an only my income.”

I have heard this from clients. Unfortunately, it is too common situation these days. Here are a few of my thoughts on how to work through it.

First, call your lender now and share your story with them. Don’t wait until it’s gotten really bad. The earlier you take action, the more options you have available. OK, so you don’t have to take action day one, but if you don’t take the time to develop a plan, time will fly by and you may be forced to make bad or rash decision later, at a time where you are in distress. You don’t even have to make an immediate decision, just simply take some time to discover options.

Some possible options:

• Loan Modification: If you do have some income, you may be able to obtain a loan modification. It’s not that difficult and you can do it yourself.  The likelihood of you obtaining a loan modification with one of you working is much higher then if you were both unemployed. Remember, you will need the income to cover your expenses for the adjustment to the mortgage payment. 
• Rent one of your rooms: I have a friend using this utilizing this option.  His house is conducive to this type of arrangement and it’s helping him a lot.
• Sell your home: It makes sense if you think about it. If it takes a year to find a job, you will wish you had done this. I watched a woman deplete her entire savings keeping up with her mortgage payment while she was hoping her business would turn around. She even went to the extent of depleting her retirement account, and then made the decision to sell. If she had made the decision a year prior, she would not have touched her retirement. This is true and I represented her. I just wish for her sake she had contacted me much earlier.

Times are a little challenging. Remove the emotional aspects of these issues, and treat these challenges just like you would a business decision. The business solution makes sense. Sell the home, minimize your monthly expense and make sound decisions. You can always buy another home later.

Let’s discuss your situation, call me today: 650-784-1849.