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If I lose my job, will I lose my house?

I prequalified for a home with 20% down and have good employment records currently. Now if I get the loan and then lose my job, which might be a possibility, would I lose the home? I have enough saved up to take care of the mortgage for almost a year if I do lose employment due to my company down-sizing. by cort.t_908_923 from Des Moines, Iowa. Oct 21st 2011 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,623 contributions

You only need a job to qualify for a mortgage.. if you lose your job after your loan has been funded, so long as you make your payments, no one can take it away from you... WilliamAcres.com

Oct 21st 2011
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Bert Carpenter (BertCarpenter)
#40 ranked lender in Arizona - 1,821 contributions

The only way you would lose your home is if you default on the mortgage. If after you close escrow on the purchase you do lose your job, and can keep making payments until you find another job, you should be fine. The bank can't take away your home just because you lost your job.

Oct 21st 2011
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Shon Atabaki (ShonAtabaki)
#50 ranked lender in Washington - 95 contributions

A word of caution is in order. You may not be at risk of losing your home solely due to the prospective loss of employment, but if you are facing that possibility, it would not be wise to use up current savings for the downpayment. I would recommend holding off on closing on a purchase and holding on to all of your cash until you are certain about the stability of future employment, because if you had to sell your home prematurely (e.g., after only 1 year), you would incur selling expenses that could be as much as 10% of the selling price, which could result in the loss of 50% of your equity in the home.

Oct 21st 2011
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Leonard Volodarsky (nyfha@yahoo.com)
#55 ranked lender in New York - 14 contributions

This must be your decision!!!Unless you are getting an increadable bargain and can be SURE to be able to sell, if you run out of funds, then slip on it!bank can not foreclose on you, just because you loose your job.BUT, if you do, and use up all or most of your savings and not able to find a job quickly, then...Give it a good thinking over.Good luck

Oct 21st 2011
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david hatfield (d.hatfield)
#442 ranked lender in California - 1 contribution

As long as you are making the mortgage payment you should have no issues. Just maintain the monthly payments and find other employment to make sure you continue making payments so you may have full enjoyment of your home.David Hatfield

Oct 21st 2011
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