According to data collected by the Labor Department, U.S. employers shed nearly 30 million jobs from payrolls this spring due to covid-19 pandemic and the economic shutdowns that went with it. If you were part of that staggering number of newly unemployed or you have lost your job due to other reasons, you have felt the stress of not knowing what to do with your home when facing unemployment. If you haven’t been able to get back on your feet and you aren’t able to pay for your mortgage and other expenses, what can you do?
To supplement your income while you search for a job your first step could be to look into applying for unemployment. If you have lost your income due to the coronavirus then even independent contractors and other workers who are ordinarily ineligible for unemployment benefits might qualify under the CARES Act signed into law by President Trump in March of 2020. Contact your state’s unemployment office for information on qualifying for and receiving unemployment.
While this income can help, it is not going to cover the amount of money that your salary was. Unemployment benefits also do not cover health insurance so keep in mind that if you cancel your health insurance you are running the risk of wracking up expensive health bills if an emergency does come up during your unemployment.
Budgeting your unemployment money while searching for a new job is one option that can help you to keep your home while you search for a new job.
For the average American, the largest expense is their housing. The typical mortgage makes up approximately 18-30% of a family’s income. Paying off a mortgage is often the top concern for homeowners dealing with job loss. The good news is that there are some options that could help you to cover your mortgage payments.
If you reach out to your lender to let them know about your job loss then they can sometimes work with you. In certain situations lenders may be willing to refinance for a lower payment, temporarily accept partial payments or even suspend the mortgage for a few months. If your lender is unwilling to work with you on your mortgage then reaching out to community groups, nonprofits and churches might have emergency funds to help you in the short-term.
Selling Your House due to Covid
If you’ve reached the point where the first two options aren’t enough to get you by and you still can’t cover your expenses then you might need to sell your house. Selling a house due to covid job loss situations can be a big undertaking in the best of times but facing this type of upheaval on the heels of a job loss can make putting your home on the market extra stressful.
One option is to consider downsizing and finding a smaller home with a smaller mortgage. If you had equity in your home then the sale could free up some cash that could help you make ends meet until you are employed again.
There is no average time it takes for a person to find a new job and when looking in the middle of a pandemic there are no easy ways to predict how long you could be unemployed. Choosing to sell your home can help you to save as much money as possible while you work towards a steady income.
Selling Your Home Quickly
Working with a realtor might not be an option if your time and money is extra tight due to your situation. If you need to sell your house fast and without the closing costs, fees or commissions then you might want to work with your local Utah house buyer at Gary Buys Houses.
Non-traditional house buyers like Gary are ready to buy houses from people like you who need help asap. The process is straightforward and simple. Reach out to Gary via the website or by calling or texting 801-382-9199. We are happy to answer any questions or even make an offer over the phone. We schedule a time to meet at your home and discuss your needs and present you with a fair written offer. We then can close at a local reputable title company, getting the cash in your hands in as little as 2 days. With us you can trust that your home will be purchased in as-is condition, no extra stress and money on repairs AND no fees or closing costs.
Need More Time?
Moving is a big upheaval, especially if you have a family to think about. If you need to sell your home quickly but you haven’t worked out where you will go next, or you need a month or two to wrap up the kids school year before starting somewhere new, then we also offer a Cash Now, Sell Later program. You can sell to Gary Buys Houses now and stay in your home RENT FREE while you use the money you got to find your new home. You can also close on your home 2-3 months from now, you’ll get the security of knowing your house is sold while still maintaining ownership of the house. Still need more flexibility? Contact Gary and work out a solution for your situation.