Determine How You Are Spending Your Money
We know how much the mortgage or rent, and monthly car payments are, but we don’t pay attention to daily spending. What is our weekly grocery bill? What about utilities and insurance? Being more aware of how you spend your money will cause you to spend it more carefully.
See Where You Can Cut Back
You need to come up with a plan for cutting expenses. Develop a budget that eliminates most unnecessary expenses. You need to maintain your spirits and keep up with contacts. However, you can cut back on those expenses substantially. Turn your thermostat down in the winter and up in summer. You can create a Mint account online for free and use it to help manage a budget.
You may be unemployed for only a short time, and a change in your spending habits may turn out to be unnecessary. But no matter how good your prospects, it won’t hurt to get your finances in order. If you get a job quickly, it may help you to start saving and investing for the future. However, a little financial planning may keep you from having to settle for a job you don’t want simply because you’ve run out of money.
Mortgage and Rent
Many Landlords and mortgage companies are more worried about not getting paid, than missing payments. While the conversation may be uncomfortable having it will enable you to get an understanding of where you stand and what you may need to do. Be ready to offer a regular recurring payment, even if low ($50/ week), as most landlords are more worried about deadbeats that don’t return their calls than a resident trying to make an effort even with a small payment. You can also use HUD resources for renters: https://www.hud.gov/topics/rental_assistance
How to Apply for a Loan Modification
If you are currently facing financial hardship and want a loan modification, then know that time is of the essence. You have a greater ability to negotiate with your lender earlier on in the foreclosure process than later. Get started today:
- Collect Your Mortgage Information: Get a copy of your mortgage statement that has your loan number on it.
- CALL or visit their website: If you’re ready to begin negotiating for a loan modification, get some free advice before contacting your lender. Talk to a nonprofit housing consultant from a HUD-approved agency and find out how likely you are to qualify for a loan modification based on your individual mortgage and financial situation.
Nonprofit housing consultants from a HUD-approved agency can provide you with:
- All available loan modification options
- A customized action plan
- Budget suggestions
- Help in negotiating with your lender
Take Advantage of Available Programs
A number of governmental programs are available to help you considering the CoVid-19 climate. You will most likely be eligible for unemployment insurance. We encourage you to do this immediately. If you have not yet received a letter from the company regarding your lay-off, please reach out, as this should speed the process in filing for the CoVid-19 relief imposed by the government.
Apply for a deferral, or forbearance to put off your upcoming payment, due to financial hardship—main loan sites below:
Utility Payment Plans and Deferment
All the Chicago based Utilities have vowed not to disconnect consumers at this time. Make a payment arrangement with them, or delay paying them.
Cable TV providers are vowing to not disconnect service or charge late fees, so take that into consideration in planning your expenses. We have links below for a couple. At this time RCN cable does not have a site dedicated to this.