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i'm on extended home loan forbearance and filing for loan modification via my bank servicer. They have been helpful in every way. However there may be other avenues for me to look at because aside from shelter, I have no money left in my budget after paying my monthly obligations. I'm retired, now aged 79 & lost 99.99% of my nest egg . I need more options to rescue myself from becoming a homeless pauper. I have gone thru 2 sets of market crash-cum-recessions. The first dessimated my nest egg. The second came with a pandemic that restricted my chances of getting employment. In between, the consistent hikes in interest rates ate up my remaining emergency funds faster than I ever imagined.  This 2nd hardship laid hurtful punishment from 3 financial intitutions that now prevent me from doing any transactions that could bring my missed payments faster.  I would appreciate advice in case fannie mae does not approve my application. I also need tips on taking back my credit stature especially since prospective employers now look at scores for judgement on credit worthiness as well. I had no late payments for the past 40years  when the pandemic broke out. I was paying down my debts even though I charged essentials to credit cards when my emergecy funds ran out faster than my direct deposits. All I know is that I need to save myself. Clearly the system does not have the wherewithall to consider recovering single nest egg owners like me. Thankfully with forums like yours, a glimmer of hope may appear for me. I zero in on credit rebuilding since employment would be the one way to earn income. I fear that life will be harder, more expensive and hurdles against the working class and retirees will continue to be low priority every step of the way.  Would you have some guidelines for me?

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Hi @Cynthia Alvarez I'm sorry times are so tough right now. I think a good place for you to start would be the 211 hotline, which is operated by United Way. You just dial 211 on your phone, same as you would 911. They can help connect you with resources like local food banks, housing assistance, SNAP and other resources in your community that can help you with bills, along with helping you find other benefits you qualify for.

You can start rebuilding credit by getting a secured credit card, but you'll need to put down a deposit, and right now just getting your head above water with your bills is more important. It sounds like you need every extra dollar you have right now, so I'd worry less about rebuilding credit in the time being.

You're right that some employers check credit. (They actually see a modified version of your credit report, not your actual credit score.) But the vast majority still don't for non-financial positions. If you were looking for a job as an accountant, of course you'd expect a credit check. But if you're looking for a part-time job to help pay the bills, I'd be very surprised if they checked your credit.

Does anyone else have suggestions?

Hi @Cynthia Alvarez, I'm sorry you're going through this. I echo what @Dear Penny said: focus on your immediate needs right now to help get you above water. In addition to United Way, here are some other resources to help with groceries and necessities. In the meantime, there are some steps you can take to help your credit as well:

  • Reach out to your existing credit card companies and utilities companies as well to see about arranging payment plans or discuss forbearance options. Many are willing to work with consumers right now, given the hardships of the pandemic. The links above provide you with their contact information so you can reach out directly.
  • You mentioned you had 40 years of no late payments. If you have a history of good credit and making on-time payments, sometimes the credit bureaus are willing to forgive an anomaly. This may not work if you've missed payments for several months, but it doesn't hurt to reach out to see what they can do for you. You can find their contact information here.
  • Do you have trusted family members with good credit? If they add you as an authorized user to one of their long-standing credit cards, your credit score can benefit from their credit age and on-time payments as well.

You may also want to consider working with a free financial counseling service. Here is an article outlining what to look for in a free service to help make sure you're making the right decision.

Last edited by Tony Wahl
Thank you for the important pointers you sent a few days ago. Much, much appreciated.

04/09
I did fail to directly negotiate with my credit card issuers. I was feeling humiliated and couldn't focus from mixed messages that led to late payments.

06 to 08
I did follow referrals including FannieMae & HUD (hope hotline). I turned to searching websites trying to learn as I go. I had phone sessions with non-profits on debt management and foreclosure prevention via 311/govt/churchprograms. Unfortunately, results just reinforced that going forward I shall again face increasing financial crises anyway. My expenses far outweighed my income. Also, work prospects have become slimmer or limited to work-at-home jobs.

It was at this point that I reached out to PennyHoarder to see if there are more I could try for. I actually thought my next destination was the shelter system.

10/16 todate
Update: My home loan servicer has given me more time under forbearance! I find that most, most kind. A Relationship Manager is helping rescue me through FannieMae loanmodification.
I have hope again. Thank God! And thanks, Penny Hoarder Community.

Sent from my Samsung Galaxy smartphone.

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