Mortgage & Job Loss... Please help!?

Question

What happens if you lose your job before closing?

Answer 1

Your best move is probably to get out of the deal.  What if you find a job in another city?  Will you be able to sell this house?  If not, can you rent it out?  Who will take care of the landlord's duties?  Will you have to leave your family behind?

Of course, if you've put down a sizable deposit, you would want to take all steps necessary to get it back.  Does your sales contract contain a financing contingency?  If so, your lender will probably cancel your commitment as soon as you notify them of the job loss.  That would be one way to cancel the contract without losing your deposit or risking being sued for damages by the seller.

If you do not notify your lender, then you might well be committing fraud.  Take a look at your application.  Are you required to inform them of material changes in circumstances?  What will you have to sign at the closing?  Will you have to sign the loan application?  Is your loan insured by the federal government?

If you can afford it, you might consider meeting with a competent real estate attorney in your area to review your sales contract.  He or she should be able to suggest strategies for getting out of your contract without losing your deposit or exposing yourself to a potential law suit.

Good luck.

Answer 2

My suggestion do not get the house, you will end up making late payments or no payments and that will be worse emotionally for you because you will be in a worse position that you are now.  When you get close to closing on a home the bank will want to see updated pay stubs and you don't have those.

Answer 3

Your best bet is to walk away from the deal.unless you have a guaranteed job lined up. If you cant afford the home it will end up in foreclosure and your credit will be shot to h**l

Answer 4

You won't get the mortgage...if they know.  If you do get it because they don't know you're really hurting yourself.  Don't try to scam them.  Fraud is not a good thing.