Week 1: stabilize
File for unemployment the day it happens — benefits lag filing. Inventory severance, savings, and the true monthly minimum. Then make the call almost nobody makes: tell your servicer before the first miss. 'I was laid off on [date], I'm requesting forbearance options' opens doors that stay shut for silent borrowers — and forbearance arranged pre-delinquency can keep you reported current.
Month 1: buy runway
Take the forbearance if offered — even if savings could cover a month or two. Preserving cash is the strategy; you can always pay early, you can't un-spend savings. Trim aggressively and route what you save toward essentials. Ask about the exit terms in writing now: deferral vs. repayment plan vs. lump sum determines what the end of forbearance looks like.
Months 2–3: build the file
Keep a folder as you go: termination letter, unemployment award, applications submitted, interviews. If the search runs long, that folder becomes a ready-made hardship file for extending forbearance or converting to a modification. New job at lower pay? That's exactly what modifications exist for — documented, sustainable, lower income is an approvable story.
The honest fork
By day 90 you'll know which world you're in: recovered income (exit forbearance on a plan), reduced income (modification conversation), or extended uncertainty. In the third case, run the keep-vs-sell numbers early while equity and options are maximal — a decision made with six months of runway beats one made the week of an auction, every time.
General information, not legal, tax, or financial advice. Homeowner Foreclosure Prevention is not a law firm, lender, or government agency. Free HUD-approved counseling: hud.gov/counseling · 800-569-4287.