There Goes the Job. What Would You Do in This Situation?

I would do the modification - soon as it is approved start looking aggresively for a new job! but that is just me!

I would start looking for a new job immediately. The average job search time now is 5-7 months. I also know someone who found one in 1 day, and others who spent two years searching before landing a job. It depends on your connections, your skillset, your dedication to the search, and many other factors.

Many people have experienced long-term frustration and worse from the process of applying for a loan modification. Some have actually lost their houses after being told they had a loan modification, paying a reduced mortgage payment for several months, then having their "application rejected", then being told they were behind and needed to pay all their overdue mortgage immediately or lose their house. This also ruined their credit rating. Be very careful of this process.

I work as a career consultant for an outplacement company and am a private career coach. If your company is giving you any outplacement services, please use them, or else use any resources available through your state for job seekers. The way people get jobs is through "networking" - talking to everyone you know - and not just sending resumes over the internet.

Do both. Start looking for a job now. In this market it takes a while. If you happen to get hired to your dream job before the layoff, then all the better for you. I wouldn't take a huge pay cut at this point.
Once the layoff occurs file for unemployment and the mortgage modification and continue looking for a job. After the paperwork goes through on both the unemployment and the modification then you can consider taking a lower paying job.

Look for another job. There is zero guarantee that your mortgage company will actually work with you if you are on unemployment. Your income might still be too high with unemployment benefits and a single salary. It also takes months to get a bank to do anything; even if they modify the loan retroactively, it might not end up helping you all that much.

Sorry to be a debbie downer. My husband lost his job a little over a year ago, and it sucked. I hope that you have good luck finding a new job, and quickly.

I would not rely on a mortgage modification. The bank will allow it until they see if you are approved. If you are not, you will have to not only make the original payment amount again, but will owe all the extra that you were short for as long as you are on the modification. If you can't come up with the money, you will lose your house anyway.
Try to find another job now. It's your safest option.

Start looking for another job. If you're unable to find one, then you still have the option of unemployment and modification.

I seen several posts on here about problems with the loan modiction process, as well as seeing articles on the internet. The chances of being approved for a modification are slim and it also is a process that takes a lot of time.

Try to start living off the amount of you'll be receiving from unemployment when the lay off does occur, and save the rest. It will help you to be better prepared.

I would combine your 1 and 2. Look and plan for the long haul. I was laid off recently, but I planned ahead and looked for a job. I now am working as a work study at the school I'm attending. It a crappy job, but the hours work for me and It actually pays more than what I was getting at my old job. NICE!

I hate to break it to you, but the odds of your finding a job within 1 month that will be of the same caliber as what you're about to lose is slim to none. Trust me, I know.

Do whatever you need to do to get the mortgage modified.

Get the mortgage modified while you have a valid reason to do so. If you need the rest and is confident you will have the severance until a specific time, save that money and file for unemployment. Then in a month after or so, look for another job. This could take some time, so you don't want to wait long since you are not sure of the job market. You are in my prayers. I have a family member who got laid off too, but she is taking the time to recuperate from the rat race and then go on from there

I'm sorry about your job loss! My only advice is that when you DO find another job, start setting aside money each month to build up an emergency fund that covers 6 months of expenses in case this ever happens again. Then you'll be prepared and have a peace of mind. GOOD LUCK!!

The best advice given so far was from Sue W. Don't be complacent though. Start looking for a job NOW. My husband was laid off from his job in 2009, moved from Florida to New Jersey and got a temporary job making less that in Florida within three months, while on the temp job he continued to interview, found a permanent job which started in November 2009 right at the end of the temp job. That job notified him of a pending layoff in July 2011 but he continued to interview the entire time while there and now has a fantastic paying consulting job which is scheduled to end in September 2011 paying double the permanent job which would end in July 2011 but could become permanent.

You don't know what the future holds but it would be in your best interest to know all of the options before you. Perhaps you can refinance your mortgage at a lower rate before you get laid off. Check with other mortgage lenders in your area and I would also consult with a certified financial planner or two before making any hasty decisions.

If you saw the writing on the wall, what have you done so far knowing this is pending? Rhetorical question. Since you are in sales could your skill set be used in a different industry to profit you and your family? Just some added food for thought.

Be knowledgeable and proactive and be positive. Positive always attracts what you are expecting. Expect great things and they will come.

Yes! My husband and I were both laid off in 2009. Hubby was laid off in April 2009 and my group of 10 people were laid off in June 2009. I was tempted to up and move to the beach and be beach bums!!

Hubby received no severance and filed for unemployment the following week. He was on unemployment for 4 months before he found a job 10 mins from the house that he really enjoys. I never had to file for unemployment because my company kept extending the RIF release date for me until April 2011 when they finally asked if I just wanted to stay. I said sure. They said, okay you're full time again.... that's it? No fanfare??

One person in my group was lucky enough to find a job within 2 weeks, but the rest of us took longer ranging from Nov. 2009 to January 2011. There is one lady still unemployed. We have 2 mortgages. I cashed in all available stock, and when that ran out I went to the second lender who is local and explained the situation that I only had 2 months of savings left and could I get a reduction. They said yes and slashed the payment in half by extending it from a 10y to 30y loan.

So do Option 3, like others have said. Do both.
Take a week and get your resume together. Get yourself together. Then start applying for jobs. Indeed.com is a great job site. Then, when your RIF (reduction in force) goes through on May 1st, take the papers and if you haven't found a job yet, file for unemployment. Unemployment paperwork takes about 2 weeks to get going and about 3 weeks before you see any money.

Get a notebook and file folder. Write down all jobs applied for, date, contact info, etc. You will need this information for unemployment. Any money spent on looking for a new job - resumes, new uniforms, clothes, work shoes, postage, envelopes, etc.- can be written on on your 2011 taxes. Keep all receipts.

Good luck. Look at this time as an opportunity to better your situation. A closer commute, and complete change of job. Each of my co-workers that has found a new position are extremely happy.

M.

Do all of the above. Look for a job now but prepare to ge tthe mortgage modification done if you don't get a job right away. If your family finances are such taht you must work then begin to look for a job now.

Life never only offers 2 choices - like: this or that. There's usually a whole array of various things that can be done in combination - or all by itself. good luck!

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Beaware of the loan modifications do your research on the modification before you apply for it...I have read up on this and then temporarily allow to lower your payments until you are approved...if you don't get approved you go right back up to the old payment + remainder of of the temporary modifcation....

Sorry a don't have a answer for your actual question.

I would take option #1. It will make it possible to keep your mortgage if option #2 doesn't pan out. It's also longer-term security for you.

I got laid off, so we had to move in with my in-laws. That was in October... I still haven't been able to find a job. (And I HAVE been looking.) Hubby has had 3 jobs, and was laid off from them. He is working at Walmart now, because it's the only thing that has any security. *sigh*

I'd start looking for a job while you have a job, it always looks better to a future employer.
If you go on unemployment you will be having to look for a job anyway and that in itself is stressful and sending back your paperwork every 2 weeks and not fouling it all up.
Everyone in your department is going to be applying for the same types of jobs, right? I'd try to be first in line.
Do file for unemployment if you dont find work, keep all the irons in the fire.
You cant file for unemployment until your last day of work anyway, so that isnt until May, make the next 5 weeks count.
Good luck to you. We are all in hard times to say the least.
Your company may be able to help place you somewhere, go to HR and ask if they are going to help y'all with letters of recommendation and such.

I've been laid off twice, once right after I bought a new house! I think it is wise to take the unemployment and ask for the mortgage modification instead of scrambling to find a new job - talk about stress. That's not to say you shouldn't begin looking. But this way, you can take your time looking for a new job and be a little more selective instead of desperate.
Losing your job is absolutely no fun and your confidence can really take a hit. Make sure you are getting out and meeting people in your time off - it will lead to good things!

Good luck with it all. I've always thought each time I was unemployed it was a great learning experience and I really grew as a person. Of course, those feelings came after I had found another job. :)

Look for another job. My husband was laid off last May and didnt really start working full-time until October. He filed and was turned down repeadtidly for unemployment. While I make good money, it is not enough to live off of alone. I just posted a question because I am scared of a lay-off as well, but I definitely know we can't live on my husband's salary alone either. He makes $1k less than I do annually, but he also has his military retirement, which is not as hefty as I'd like it to be. But definitely look for a new job. There is no guarantee on anything coming through at all for you. Do you get a severence pacakge to help for a month or two?

it looks like you have plenty of advice here so i'll be brief...make the choices to save money everywhere you can and keep your house. a few less dinners out, no new clothes for awhile, lower the heat a little, get books from the library not the store, etc... so whether you get a job, take unemployment, get the loan mod or not, make making that monthly mortgage payment goal #1... for your family's sense of security there is nothing better than the home...nothing wrong with renting, but you've already made the down payment and paid some of the interest - houses aren't selling so great, so just keep that focus and in my opinion you'll come out on top in the end. good luck to you.

Seems logical to me to ride this job to the end - see if you get any severance package - don't burn any bridges and save your nickels and dimes! Then get on unemployment and get that mortgage modified. None of that means you can't start your job search right now - get a feel for what's out there, think about what you'd be willing to take (you are likely going to have to take a "lower" job) and also consider going back to school or taking some job training - something that might broaden your search. I believe you can still collect unemployment while doing schooling or job training.
Good Luck - but don't make any hasty decisions that you might regret.

At least you have a great company that was nice enough to give you advanced notice. Most companys don't do that, they just fire you when you get there & give you a few mins to clear out your things. I've been laid off & didn't get the luxury of a little time that y'all are getting. I'd first start right now, looking for a job. Even if you can't find the same type of job, getting any job for the time being is, to me, I think more of a concern rather than trying to find one in the same area. I'm not sure what your job title was or what type of work you were doing but there are plenty of jobs out there & if you look, you can find one that will allow you to still make some money even if it's not the same large paychecks, it's better than nothing at all. My husband had to take a pay cut in order to be able to just pay the bills...he's making exactly half of what he was making before. I seem to be only to get jobs that pay only a couple hundred a month even though I went to college & am quite qualified for a better job than what I have now, that's all I can seem to get. Employers these days want more training, younger women, etc. which is sad. Try going to free computer classes at employment agencies or community service classes that don't cost much to get further job training in a different area or further trained in your area of expertise. I know Microsoft usually has free tutorials on their programs on their website. You may want to get a reg type job & take night classes or online classes to get trained in another field all together that may be a better, long term option for jobs. Hope this helps!! Good luck.

Your friend is right! Totally go for the unemployment and the home loan modification. While I was on maternity leave my boss basically told me he couldn't hire me back so I went on unemployment and we got the modification. Thank god we did because there was no way I was going to make that kind of money again with this economy. The home modification has allowed me to be a stay at home mom. I thought I would be going right back to work and if I had my wish I would work for the same firm I was before but it's in the architectural field and business is not good so I don't know if he will be able to hire me back at all. I was the office manager and did his books, payroll, etc. Best job I ever had! Real down to earth boss. I doubt will ever find that again! But I am living being a stay at home mom! Never would I haveevwe thought things would turn out this way but we took the cautious side and I am glad we did!! Jobs are few and far between these days and the pays are much lower too! Nothing wrong with coasting for a while and getting the home modification and if you want to do back to work great! You won't be so rushed and have to take a crappy job with a crappy boss with crappy pay!
Good luck!!

#1

It takes a long time to get another job... if you want it in the SAME field/job title.

take the lay off to get the loan modification and then look for a job. this way you can get the loan modification fairly easily..... i know 2 people that they've been struggling trying to get a loan modification and their banks have not been as cooperative and 1 is actually loosing her house now..... so take it to get the modification....and also with the job market still not the greatest this will allow you to take a pay cut if needed to accept a job.

Option #1 please, typically when you ride out the lay off there are severence of sorts and things like that you can take advantage of, get unemployment started and work to get a new position ... you can start looking now but I would make sure your finances are in order before you take on another job. If your lenders are willing to work with you accept that (many will not) and work to get another job but do not burn bridges with the company your are currently in. It could come back to haunt you.