This report came from the Wall Street Journal yesterday, noting that the official unemployment rate in California is now at 10.1%. One more month like January (if not 2 to 3 smaller increases) and will have the highest unemployment rate since The Great Depression.
We’re reporting this figure because at Loan Modification Daily we know job loss is one of the primary hardships with homeowners facing foreclosure The combination’s of the credit crunch, housing bubble, and unemployment is directly correlated to the increase in home foreclosures. We also believe that these two figures are going to rise in tandem in the coming months.
You should consider all of the following scenarios in the coming months and contact a California Loan Modification specialist for a free consultation.
- How safe is my job?
- If I loose my job how soon will I be able to find a new one?
- What portion of my expenses will my unemployment insurance cover?
- Is my home loan underwater, otherwise is my home worth less than the amount of mortgage?
- Is my interest rate going to readjust and what will my new mortgage payment rise to?
- Will the Government’s new Mortgage relief plan apply to me and will I benefit.
- Do I anticipate any other major expenses in the near future such as health care, transportation, education goals, etc.
If for example you live in the San Francisco Bay Area, chances are you will not be able to benefit from the new Obama Mortgage Relief Plan. Further you do not need to be unemployed today to be considered for a loan modification. You may be anticipating a future lay off, pay decrease, reduction in hours or similar. You may be able to afford your mortgage payment today but if your loan is underwater and your mortgage payment surpasses 40% of your income you have a very good chance of getting your mortgage loan modified. There are many scenarios but consider that the cost to you for a loan modification consultation is free