How to Handle Job Loss

One of the most important components of managing job loss is dealing with your finances, specifically your mortgage. In April of 2018, there were 1.7 million discharges and layoffs in the United States? More so, this is about average for the month, which indicates job loss is not something that happens only to some people. It can happen to anyone— and it does.

Take a Deep Breath

The first step in the process is to focus. Losing your job is difficult, but it isn’t something that has to stay that way. You can get another job. Most people will lose a job in their lifetime at least once, and that’s okay.

It’s always going to be important to have a bit of worry in the back of your mind. It helps you to realize that you need to do something to get things back to a normal level. What’s important for most people who have just lost their job is to pull themselves together to focus on the future. The good news is the job market is highly competitive and new opportunities are out there to help you to make a change.

Take a deep breath. Recognize your reality. 

Job loss is something most people face every few years. It happens to everyone.

Now, realize you don’t have to just sit there. You have new opportunities to explore!

View Job Loss As An Opportunity

What could it mean if you were offered a clean slate? Imagine being about to wake up in the morning and do whatever you want in terms of work. While that may not happen instantly, view your job loss in this manner. It can be eye-opening to you.

Most men and women spend a lot of their time unsure about what to do once they’re blind-sided from losing a job. However, you can view this as an opportunity to move yourself and your career forward.

You may be able to find a job in an area that you enjoy more thoroughly. What if going to work each day could be rewarding for you? You may like the work you were doing, but what could make it a bit better and more exciting for you? Look at this job loss as your chance to explore something new that could achieve these goals.

You may, on the other hand, find work that allows you to do something new that you love. Many people leave jobs because they simply hate the work. They may struggle with the day-to-day tasks, or they may have no trouble at all with the work. They just don’t like doing it. If it doesn’t excite you to get up each day, why do it anyway? Now, you have the perfect opportunity to explore something new.

While job loss seems like the end, it could very well be the beginning of something better for you. What could this mean for you and for your future? The options are endless!

Talk to a HomeGo agent today.

What To Do After a Job Loss

When you’ve lost a job, it becomes essential to take steps right away to protect your financial future. That means conserving funds right now. It also means being proactive at improving your financial situation.

Right now the goal is to shore up what you own and minimize any further loss. Remember, you have to be focused, determined, and wise when it comes to protecting your family after a job loss.
File for unemployment right away.
This may give you some financial support while you are unable to work. Unemployment can be available to many people who lose their job, depending on the reason for it.
Start assessing your finances.
What are you paying each month? What can you reduce from your budget? Think about savings, retirement accounts, and those extra services you are paying for that you don’t really need right now.
Think about your mortgage situation.
When you have job loss, mortgage payments are still due. You’ll need to work closely with your budget to ensure you don’t fall behind on them. Should you keep making these payments? Is now the time to get out from under a loan you cannot afford? Start thinking about a plan here.
Contact your health insurance provider.
The company’s human resource manager can give you some insight into the options you have. Generally speaking, you’ll have some time to find a new insurance plan or to enter into COBRA. Maintaining your health insurance is a critical step.

Start Building on Your Career Goals

Once you’ve focused on getting your finances organized, it’s time to start working on finding a job. Before you start to do that, though, build yourself up to be the ideal candidate. We mentioned just how flexible and versatile the job market is. However, companies are not hiring just anyone. They expect talented professionals who have the ability and the willingness to do the work. You need to shine.

You have a variety of opportunities to do this right now, though. Think about your resume – when did you last update it? Have you placed it on the job boards online? What about LinkedIn? Updating this can give you an important opportunity to begin networking to find the job of your dreams.

You may be able to work part-time for a bit to keep money coming in. This can also be a great way to get into a new career or area that you may not have a lot of experience with just yet. Volunteering is also fantastic – it helps you find paid positions in areas you’re interested in.

Bring Yourself Back to Health

In the coming days and weeks, you may need to make big decisions about yourself. Can you stay in your home? Do you need to think about going back to school? Right now, though, it’s time to improve your life in any way you can do so. That means cleaning out your home, getting back to eating healthy meals you prepare at home, and working on using some online tools and resources to build up your work skills.

This is also a good time to focus on your physical and mental health. When you walk into a job interview, you don’t want to be the person desperate for a job – you want to be the one ready and motivated to work hard. That shows in your mental state.

A Homeowners Options After job Loss

Most people believe they can get a job quickly. If you believe you can do so, you can stay at home and work toward building your future by applying for job after job. If you decide to do so, it is critical that you recognize when you need to take action. You can’t do nothing for too long.

In the meantime, there are a few ways to generate income from your home that could give you some of the support you need right now. The sooner you take action to do this, the better. For example, you may want to rent out a room for a few months to generate a few extra dollars to pay toward the mortgage payment.
Another option is a lower monthly payment. Refinancing for a lower rate could mean a lower monthly payment. If there is still an income coming into the home, such as from a spouse, this could be a viable way to reduce your mortgage costs. If you don’t have an income, though, it could hurt your lender’s willingness to work with you.

There are programs available to help those in need. Some lenders are more than willing to work with you on this. Then there’s the risk of having credit card damage and trying to rebuild your credit after a significant blow to your income. It doesn’t always work out well.
You may be able to get your lender to talk to you about loan modification – a way to change up the terms of your loan to make it a bit more affordable to you. This could work, in some cases, as long as your lender believes you have the ability to keep making payments in the long term. You can also ask for a forbearance. That’s a bit of a break in loan payments. Will the lender allow it? It’s up to them to decide.

When it comes to job loss, mortgage loan payments are going to be hard to make now, but they will also be harder to catch up on later. For this reason, think clearly about this. If you don’t have the ability to get caught up, it may not be an option for you to use any of these programs. Still, it is worth talking to your lender about if you believe you will be in a job soon.
Foreclosure can be devastating. You’ll lose your home to the lender. The lender is going to then resell it. Your credit is going to take a solid hit and will for some time, making it hard for you to buy a new home after you get back on your feet.

However, foreclosure can get rid of a lot of your legal liabilities and can help you to move on. There’s no doubt that foreclosure can be a difficult situation, but for some, it may be necessary.
A bankruptcy filing can be a good option if you need to freeze the financials quickly. However, if you want to stay in your home, you’ll need to prove to the bankruptcy court and the lender that you can do so. Again, you have to count on that job coming through.

Bankruptcy can offer some help if that happens – you’ll be able to get rid of a lot of debt, may get rid of some of the fees and extra costs on your mortgage and you get a fresh financial start.
Perhaps one of the best solutions is to simply sell your home. You don’t necessarily need to do any type of work to the home – when you are selling as is, the buyer recognizes they need to take on financial responsibility for the home’s condition. Selling your home does a few key things – it gets you out of your loan, it doesn’t hurt your credit, and it helps you to get rid of all legal liabilities with the property.

What options do you have? After job loss, your focus must be on improving your financial health. Selling your home may be one route to take to make this happen, especially when you have a buyer ready to go.

Schedule a no-obligation home tour, or talk to a HomeGo agent today.

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Check out more of our information on job loss.

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