If you’ve recently lost your primary source of income because of a job loss, your biggest worry is likely to be how you will be able to keep up with your mortgage repayments in the short term. If you have savings, it’s important that you use these carefully so that you are able to live a relatively normal life until you gain a source of income again.
If you’re worried about not being able to make your mortgage repayments and possibly losing your home in the future, the following are some things that you can do to be financially smart during this difficult time.
Prioritize your spending
While you are looking for a new job, the first thing that you should do is to prioritize your spending. Pay your mortgage before you engage in any unnecessary spending, and temporarily cut out any luxuries such as eating out in restaurants and buying clothes.
Use your assets
If you are running short on money and still don’t have an income, you may want to utilize assets such as jewelry or electronics to free up some extra cash.
Contact your bank
It’s important that you communicate with your bank as soon as your financial stability is disrupted. If you are cooperative and let them know of possible issues far in advance, it’s likely that your bank will be reasonable and helpful. If you can show that you are going through temporary financial hardship, they may even be able to grant you a temporary holiday from your mortgage repayment obligations.
Know your mortgage rights
It’s always wise to be in control of your situation by being well-informed of your mortgage rights. By being prepared in this way you’ll be able to take affirmative action if you face foreclosure.
If you have recently lost your job as a homeowner, make sure that you have preventive measures in place so that you are protected from the possibility of foreclosure.