What Happens If You Lose Your Job After Closing On A House

For many Americans, buying a house is the culmination of a long-term goal. It’s a sign of stability and security. But what happens if you lose your job after closing on a house? Suddenly that dream can become a nightmare. If you’re unable to make your mortgage payments, you could face foreclosure and lose everything you’ve worked for.

That’s why it’s important to have an emergency fund in place, so you can weather tough times without going into debt or losing your home.

No one knows when they might lose their job – so it’s best to be prepared for anything. Read to learn the available options for you to lower your mortgage payments.

Closing On A House Meaning

When you close on a house, it means that the sale is finalized and you are now the legal owner of the property. The title is transferred from the seller to the buyer, and you will receive the keys to your new home. Closing usually takes place 30-60 days after a purchase agreement is signed.

During this time, the buyer will typically get a loan from a bank or mortgage company. Once the loan is approved and all the paperwork is in order, the closing can take place.

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What Happens If You Lose Your Job After Closing?

What Happens If You Lose Your Job After Closing On A House

If you lose your job after closing on a house, you may be worried about how you’ll make your mortgage payments. But don’t despair – there are options available to you.

  1. You should contact your lender and explain the situation. They may be willing to work with you and give you some extra time to make your payments.
  2. You may be able to sell your house and pay off the mortgage. This is known as a short sale, and it can be a good way to avoid foreclosure.

Whatever you do, don’t just stop making your mortgage payments! If you do that, you could end up in foreclosure and lose your home.

What Not To Do After Closing On A House

Once you’ve closed on a house, there are a few things you should avoid doing.

  • Don’t make any major changes to your employment status. If you quit your job or get laid off, it will be harder to make your mortgage payments.
  • Don’t make any major purchases. Taking on more debt will just add to your financial burden and make it harder to pay off your mortgage.
  • Don’t neglect your home. Be sure to keep up with maintenance and repairs. If something breaks, fix it right away. Neglecting your home could lead to expensive repairs down the road.

Do Lenders Verify Employment After Closing?

Most lenders will verify your employment before closing on a loan. They want to make sure that you have a steady income and will be able to make your payments.

If you lose your job after closing, the lender may not find out right away. But if you stop making your payments, they will eventually figure it out. At that point, they may contact you and ask what’s going on. They may give you some time to find another job or come up with a plan to make your payments. But if you can’t make your payments, they could foreclose on your home.

Foreclosure Meaning In Real Estate

Foreclosure is the legal process by which a lender takes back property when the borrower has failed to make their mortgage payments.

If you are facing foreclosure, it means that your lender has begun the process of taking back your home. They will send you a notice of default, and you will have a certain amount of time to catch up on your payments. If you don’t, the lender can sell your home at a foreclosure auction.

If you’re facing foreclosure, it’s important to act quickly. There are programs available that can help you keep your home, or at least delay the foreclosure process. You should contact a housing counselor or attorney to get help and learn about your options.

What Are The Consequences Of A Foreclosure

A foreclosure is a serious matter, and it’s important to get help if you’re facing one.

  • A foreclosure will stay on your credit report for seven years. That doesn’t mean you won’t be able to get a loan during that time, but it will be more difficult. Your credit score will also take a hit, and it may take years to recover.
  • A foreclosure can also affect your employment if you are applying in the finance industry. It’s important to remember that a foreclosure is a public record. That means anyone who does a background check on you will be able to see it.
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How To Reduce Mortgage Payments

There are a few things you can do to reduce your mortgage payments.

  • You could try to get a loan modification. This is when your lender agrees to change the terms of your loan, such as the interest rate or the length of the loan.
  • You could also try to refinance your mortgage. This is when you get a new loan with different terms, and use it to pay off your old loan.

If you’re struggling to make your mortgage payments, talk to your lender. They may be willing to work with you and give you some extra time to make your payments.

I Can’t Afford My House Anymore

You could try to sell it and pay off the mortgage. This is known as a short sale, and it can be a good way to avoid foreclosure.

Shortsale is a process where the bank agrees to let you sell your house for less than what you owe on the mortgage. The bank will forgive the difference between what you owe and what the house sells for. A short sale can be a good option if you’re struggling to make your mortgage payments to avoid foreclosure.

I Can't Afford My House Anymore

Why Should You Sell Your House To ASAP CASH Offer?

ASAP CASH Offer is a company that buys houses in any condition. We will buy your house as-is, so you don’t have to make any repairs. We can close on your house within 7-28 days.

Selling your house to us is a quick and easy way to get out from under your mortgage payments. You don’t have to worry about making repairs or dealing with a real estate agent. We will take care of everything for you. If you’re struggling to make your mortgage payments, or if you’re facing foreclosure, selling your house to us is a good option. Contact us today to learn more.

Frequently Asked Questions

Can you quit your job right after closing on a house?

It is not advisable to quit your job immediately after closing on a house. Purchasing a home can be an expensive endeavor, and it may take some time for you to adjust financially or establish the necessary means of repayment. It is important that you have stable income before securing large amounts of debt as this could lead to serious financial hardship in case something unexpected happens. Thus, it is better if you wait until your finances are steady enough before quitting any job following the purchase of a property.

What happens if you lose your job while in escrow?

At ASAP Cash Offer, we understand the uncertainty of life and that unfortunate circumstances can arise at any moment. In our discussions with potential buyers before they go into escrow, an appropriate safety net is established in case job loss happens while in the process of a cash sale. We offer partial forbearance options based on individual cases to increase liquidity during difficult times caused by something like lost wages due to job loss. If you’re concerned about what would happen if you lose your job while in escrow or have questions regarding payment plans for those who experience financial struggles, please contact us so we can discuss plan options that could work best for your situation!

What happens if you lose your job a day before closing?

Unexpected job loss can be a stressful and intimidating situation; however, cash homebuyers understand that life doesn’t always go according to plan. If you find yourself in such an unfortunate predicament the day before closing, fear not – contact your cash home buyer immediately so they are able to adjust the deal accordingly without jeopardizing either party’s interests. With enough flexibility and determination from both sides, there may be options available for negotiating a new closing date or other feasible alternatives.

Should I tell my bank I lost my job?

It is never recommended to tell your bank that you have lost your job. Depending on the terms of the loan, informing them may put you in default and result in penalties or worse. If payments become difficult to make after a job loss it might be best to reach out for assistance from local resources who can walk you through budgeting assistance options, debt relief programs, free counseling services and more so that payment obligations can be satisfied without penalty or further damage to your credit score.
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