Looking for Insight on Losing Home Due to Unemployment (foreclosure, rent)

lakesarea · 01-09-2010, 12:50 PM

Long story short. My husband's been laid off since October 2008. We pray that he either gets hired by one of the many places he's applied to or will be called back to his old place of employment. We are blessed to be able to still cover all our obligations because we live frugally, however, once the unemployment is gone, we will definitely lose our home. I have also been searching for a second job, hoping that maybe if I got one I could make up the difference once the unemployment is gone, but no job so far.

I'm looking for insight from anyone else that has lost or is losing their home because of being unemployed, not because they chose to walk away due to being upside-down.

Sparrow_temp · 01-09-2010, 01:10 PM

I hate hearing these stories since they're so sad but I think there are going to be a lot more of them in the near future. If you're out of work for an extended period of time in MI -- look outside the state for work. Most will probably have a house and don't think moving is an option because of the double payment thing but the reality is that you're going to lose the house anyway if you can't find a job. Places like Nebraska have a much lower unemployment rate than MI so people should be looking where the jobs are -- that isn't MI.

zthatzmanz28 · 01-09-2010, 02:58 PM

Quote:

Originally Posted by lakesarea

Long story short. My husband's been laid off since October 2008. We pray that he either gets hired by one of the many places he's applied to or will be called back to his old place of employment. We are blessed to be able to still cover all our obligations because we live frugally, however, once the unemployment is gone, we will definitely lose our home. I have also been searching for a second job, hoping that maybe if I got one I could make up the difference once the unemployment is gone, but no job so far.

I'm looking for insight from anyone else that has lost or is losing their home because of being unemployed, not because they chose to walk away due to being upside-down.

Yeah, it is a terrifying feeling to watch ones home slip away.

Been there, saw that...

There are tough choices to be made.

Remember it will take your lender up to 1 full year to evict once you stop making payments.

We had to chose either paying for what we knew we were going to lose anyways or diverting the money to something that would benefit us.

A choice that only you and your husband can make.

Possible you can rent it fo the payment?

I cannot DM you(?) but if you can DM I will share more...

Look here for some possible answers as well...

//www.city-data.com/forum/mortgages/

lakesarea · 01-10-2010, 10:26 AM

Thanks zthatzmanz28 for your reply and pointing out an additional forum to search.

I just needed to feel like I wasn't the only one even though I know I'm not.

lakesarea · 01-10-2010, 10:30 AM

Thanks Sparrow_temp for the thoughtful reply.

It's tough in many places.

scolls · 01-10-2010, 10:57 AM

Have you looked into loan modification? Typically I would look at that as a last result. They have the Hope program for mortgages, but that has gotten mixed results.

lakesarea · 01-10-2010, 05:54 PM

Thanks for your reply, scolls. We are not eligible for loan modification at this time.

scolls · 01-10-2010, 06:10 PM

Quote:

Originally Posted by lakesarea

Thanks for your reply, scolls. We are not eligible for loan modification at this time.

If your mortgage and property taxes are more than 30% of your income then you would qualify.

OHGreat · 01-10-2010, 06:33 PM

I'm in the same boat. been out 13 months and here in Michigan I really dont see much hope of getting a job at this point. I still have 6 to 8 months of Unemployment left but the way things are I just dont see it happening. I could use savings to stay for a year but at this point I'm not planning on it. I may need that money to live for quite a while without a Mortgage. I have family which I will move in with if it comes to this. Sucks but what else can we do. I also dont see putting money into something your going to lose anyway.

Coldjensens · 01-10-2010, 08:22 PM

My brother;'s family struggle for over a year to make the payments and finlally gave up. PArtial payments were worthless since they would foreclose anyway. Finally they just stopped making payments altogether and put the funds to better uses. It took over two years for the bank to make them leave and they should not have done so. THe bank left the doors open and the heat off. pipe froze, animals came in and the house is ruined. Maybe banks are getting smarter now and will let you stay for a while at minimal or no rent. Not sure.

Remember, some time ago, you did nto own a house. Life was not worse then because you did not own a house. It will not be worse now if you stop owning a house. In some ways it will give you much more freedom.

Not sure if they will come after you for the upside down balance. Probably not right away anyway. They have six years to do so. Frnakly unless the bank gives you a release, you may want to avoid accumulating assets for a while.

The state has a help hotline for foreclosure problems. See if you can get help from the state or some other organization as to what to do. You need help from a lawyer, but obviously, you cannot pay for one.

Sorry this is happening to you. Just keep in mind that it is only money, only a piece fo paper and do not let it get you down. You are no worse off than you were some years ago wbefore you boght a house. Best of luck to you. If you have faith, keep your focus there and you will realize that this is not as important or bad as it seems.