Let your landlord know about your situation immediately. Try to negotiate partial payment for a few months or ask if you can do some maintenance work in place of a portion of your rent.
Look for less expensive housing. When calculating costs, remember to include moving expenses, deposits and family adjustments. Consider moving in with family or friends or sub-leasing if you can't break your lease (first check your lease to see if that is an option). Consider finding a roommate or renting out a room in your apartment.
Call your mortgage company immediately to work out a payment plan. Some lenders may allow skipped or partial or interest-only payments for one to six months.
Check your escrow account. If it contains more than a two-month cushion, the bank or mortgage company must refund any excess.
If FHA, HUD, FMHA or VA federally insures your mortgage, call the insuring agency immediately to determine what options are available to you.
If you miss three or less mortgage payments and then return to work, ask your mortgage company if you can set up a "forbearance plan" where you pay one and a half month's mortgage until you become current. Catch up on the principle first, then on penalty charges. A lender can't foreclose over late charges.
If you consider selling your home, remember, it may not sell quickly and that rent may be higher than your existing mortgage. You may be faced with a tax problem if there is any gain on the sale and you don't repurchase a home within 24 months. Balance potential gains against potential losses.
Call (734) 282-7171 to see if there are any resources to help with mortgage default.
