LOOMING THREAT to homeowners…

Homeowners are now wondering whether their homes were actually a good investment, even though 68 percent of homeowners say that their home’s value is “very or somewhat important to their retirement plan”[1]. This uncertainty is likely due, at least in part, to the fact that according to 70 percent of homeowners, they would be able to make mortgage payments for less than 9 months, while the average unemployment length is nearly 10 months. Around a quarter of homeowners say they could pay on their home for less than three months.

The difference between how long an individual could pay their mortgage and the average length of unemployment is called the “mortgage gap.” When that number is negative, it means that homeowners’ investment in their home is in danger if they lose their job[2]. Financial analysts recommend contacting your lender immediately if you lose your job and attempting to cut spending by 50 percent if possible.

*God Speed*

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