Lost your job? What to do about the house
Whether you worked for the federal government or anywhere else, here's how to protect your choices: benefits first, then your servicer, then the house.
No obligation. No pressure. Takes about 2 minutes.
The short answer
You don't have to decide about the house this week. File for unemployment right away, and if the mortgage will be hard to pay, call your servicer about forbearance, which pauses or reduces payments for a time but doesn't erase what you owe. If the numbers still don't work once you know your income, deciding to sell before you fall far behind gives you the most room to choose how.
Step by step
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1
File for unemployment
Apply with your state's agency: the Virginia Employment Commission, Maryland's Division of Unemployment Insurance, or DC's Department of Employment Services. Former federal civilian workers file under the UCFE program, usually in the state of their last official duty station, and will be asked for an SF-8 and SF-50.
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2
Build a short-term budget
List what's coming in, like benefits or severance, and what has to go out. Knowing your monthly gap tells you how long you can carry the house.
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3
Call your servicer before you miss a payment
Ask what options are available to reduce or pause payments. Forbearance doesn't erase or reduce what you owe; the missed amount has to be repaid, and interest may keep adding up.
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4
Talk to a free housing counselor
HUD-approved housing counseling agencies can look at your situation with you and help you talk to your servicer, free of charge.
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5
If the house no longer fits
Listing usually nets more if you have time and the house is in good shape. A cash sale can close in as little as 7 days with no fees or commissions if you need to move on sooner.
Sources: U.S. Department of Labor: UCFE Fact Sheet · CFPB: What is mortgage forbearance? · CFPB: How to work with your mortgage servicer · CFPB: What is a HUD-approved housing counselor?
This page gives general information. It isn't legal or financial advice. Benefit rules are set by each state and your servicer's options depend on your loan, so check with your state agency, servicer or a housing counselor.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
If selling starts to make sense, we'll show the cash offer next to what listing could net, so you can decide with the real numbers.
Frequently asked questions
Can I get unemployment as a former federal employee?
Federal civilian workers who lost their jobs through no fault of their own can claim under the UCFE program. It follows the unemployment law of the state of your last official duty station, with the same eligibility rules as regular state benefits, and the benefits are subject to federal income tax.
Does forbearance mean I owe less?
No. Forbearance temporarily pauses or reduces payments, but you still have to repay the missed amounts, and interest may keep adding up.
Should I sell now or wait until I find a new job?
If benefits, savings or forbearance can cover the gap, waiting may be the better choice. If they can't, getting your numbers early costs nothing and comes with no obligation.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.