If you get a mortgage loan through bank and lose job. What options do you have to get out of that contract?

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If you get a mortgage loan through bank and lose job. What options do you have to get out of that contract with the bank? Or what options do you have to reduce the mortgage payments so payments can still be made?

2 Comments
  1. Reply
    wizjp
    January 22, 2011 at 3:17 am

    (1) Apply for a modification.

    (2) Sell.

  2. Reply
    AttyCatherine
    January 22, 2011 at 3:24 am

    While you can’t really “get out of” a mortgage, there are things you can do. There’s a new program for people who have lost their jobs and are getting unemployment benefits, that applies to some kinds of mortgages. The bank can reduce your payments for a few months while you are looking for another job. You may also be eligible for other “foreclosure prevention” programs, depending on what kind of loan you have.
    The first thing you should do is call your bank and tell them you lost your job. The bank will send you a form to apply for whatever assistance they offer. Get your financial records in order – usually they will want to see 2 years of tax returns, proof that you are on unemployment, and at least a couple of months of bank statements. Keep a copy of everything you send to the bank, and send it by a method that will give you a return receipt.
    Whatever you do, don’t just give up and walk away from your home without finding out what your rights are.

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