No job Need Equity From Home (credit, increase, dollars, income)

[JD Clay]

I am unemployed. Well actually I make a few dollars as a contract worker. I have a pretty decent chance of getting my old also contract job back in the near future. Unfortunately before that happens I am seriously running out of money. So much so I will be totally broke very soon. I have a lot of equity in my home and it is just sitting out there. I bought my home 2 years ago for $241,000 with $160,00 down. I am kicking myself everyday for having put so much down. I could be using some of that money now. I was told my home is worth $226,000 today (by my bank.) I owe $78,000 and change on my existing mortgage.

I went to my bank and contacted another and they say there is no way I can get a no doc loan since the new regulations went through and of course I have no income for the loan. Is there anything I can do in this situation? Is there anyone out there who can give me a loan or a line of credit or anything based upon the equity I have in the home and nothing more? I would be putting up the home as collateral and there is no way the value of the home would ever drop to under what I have in it.

Anybody have anything out there for me? The home is located in North Carolina.

[bluestarkidd]

I am in this exact same situation. Have you tried renting out a room or two? I was told by a lender this week that rental of a room to a possible family member can be considered as income towards re-fi/cash-out.

[user_id]

Sell the house, a lender has no idea if your a job will materialize in your future or not.

[chet everett]

I basically have to agree with the suggestion that you may need to consider selling the property.

The funny thing is that had you opened up a HELOC back when you were working that might have been a way to keep things together a little longer, though of course there are LOTS of people that decided to tap their HELOCs for things that were far from essential / not likely to increase the marketability of the home. Those folks are technically in a WORSE situation that you, as it at sounds like you are could short sell for just a modest loss and if things pick up just a about 10% (which is not impossible if there things you can DIY to improve the property) you might actually be in the black...

[homeowner35]

I am sorry about your situation. Unfortunately, obtaining a loan without a job is not going to happen. I would try to get roommates.

I recommend to all employed homeowners with 20% of equity to get a home equity line of credit. It does not cost anything and it can help during difficult times.