Unemployment and financial crisis have created havoc in our lives. In a recent survey, it has been found that there is a gap in Americans' ability to pay their mortgage after they became unemployed. Around 68% of the homeowners have claimed that once they lose their jobs, they wouldn't be able to make mortgage payments for more than 9-10 months.
Here is a list of 5 ways which will help you in dealing with this problem of mortgage gap:
1. Rent out a portion of your home: This is a good option to earn some extra money which will help you in paying off your mortgage. You may even rent off a single room to generate some extra income.
2. Look out for help: There are various government organizations, non-profit agencies as well as social programs which will readily help borrowers when they are facing financial hardship. The National Council of State Housing Agencies, Home Affordable Modification Program, Hope Now are some of the organizations to contact and take help from. They will look into your situation and let you know what type of help you may expect to receive.
3. Get in touch with your lender: Once you lose your job or get a pay cut, inform your lender about your financial hardship. A large number of lenders are willing to work with homeowners now. When you contact your lender, you should ask about the various options available such as: forbearance, reinstatement, advance repayment plan, loan modification, etc.
4. Sell off items: In order to earn some extra cash, you may even sell off some of your stuffs using the services of Craiglist or eBay. Old jewelry, old books, furs, etc. can be sold off easily through eBay or Craiglist. You will get good offers for such items from these websites. This extra money will help you in paying off your mortgage payments for the next few months.
5. Cut down on spending: When we have a good job and income, we tend to spend more. Once you're going through a financial hardship, you should slash your spending. You can increase your insurance deductibles thereby reducing monthly premiums, cancel your cable and landline service, go for the cheapest plan for your cell phone and Internet service, etc. You should stock up your favorite grocery items when they are on sale in order to save some dollars. You can even stop using those branded products for the time being and look out for similar but cheaper stuffs.