Housing - Keeping a Roof Overhead (1265)

In good times and bad, housing is one of the biggest expenses most families face.

Here are some things you can do to avoid housing problems if your income drops.

If you expect to have a problem paying your rent, tell your landlord about your situation before your rent is due. Ask for a temporary postponement until your income resumes or offer to provide some service, such as painting, in exchange for rent.

Suggest making smaller payments for a month or two with the understanding that you will catch up when your income increases again. Often it "costs" money for a landlord to change tenants, so your landlord may be willing to work with you.

If you are a homeowner and you aren't going to be able to pay your mortgage, contact your lender immediately. You may be able to delay a payment or arrange a lower payment. Most lenders would rather avoid the time and cost involved in a foreclosure if they can work out an alternative.

If your income loss is to be long-lasting or permanent, you will need to consider other options. You don't have to live under the stress of meeting mortgage payments that are too high. Some options are:

- Take in a roomer/renter and use the money for the mortgage

- Sell the present house and buy or rent less costly housing

- Rent the present house to someone else, and rent less costly housing for yourself

- Move in with relatives or friends—offer to help pay costs

- Deed the house back to the lender, you won't lose much if you’ve only owned the home for a few years.

Homeowner’s Insurance

If you can't make an insurance payment, contact your agent. There may be some leeway, possibly 10 to 30 days, in premium payment due dates. Explain your situation and check to see if smaller premiums are possible through changing to monthly, quarterly or semi-annual payments.

You may also want to change to more basic coverage, change the deductible, or eliminate nonessential coverage. Don't eliminate insurance coverage altogether, however.

Real Estate Taxes

If you can't pay your taxes, remember that interest accumulates on unpaid taxes. If you don't pay property taxes, you'll receive notice of actions against you by the county or city. The notices are serious, because if you don't pay your taxes, the government can sell your property through auction.

Utility Payments

Utility cutoffs can and do happen. Disconnection varies with weather and family conditions. If you can't pay your utility bill:

- Contact the utility immediately—before the due date and before you need fuel

- propose a new payment plan based on your current ability to pay.

- check to see if you are eligible for your area’s fuel assistance program through your county social service agency

- Talk with family members to decide how you will safely reduce utility use to cut costs.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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