Losing your home unexpectedly, whether due to natural disaster, foreclosure or eviction, can be overwhelming. While the emotional toll is significant, taking immediate financial steps can help you regain stability and plan for the future.
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Here are nine financial things to do if you unexpectedly lose your house.
Assess Your Immediate Financial Situation
Take a close look at the current state of your finances. Check your bank balances, credit card limits, and any savings or emergency funds you have.
Understanding your financial standing will help you make better, more informed decisions.
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Check for Insurance Coverage
If a natural disaster, fire or another covered event caused your housing loss, contact your homeowners or renters insurance provider to file a claim.
This could provide immediate financial relief for temporary housing and essential expenses.
Seek Temporary Housing Assistance
Look into emergency housing options, such as government programs, nonprofit organizations and short-term rental solutions. The Federal Emergency Management Agency (FEMA), local shelters and community programs can provide support, depending on your situation.
FEMA, for example, has programs to support individuals and households affected by natural disaster, provide legal services, and offer unemployment assistance. And according to the Consumer Financial Protection Bureau, there are local programs that can offer housing assistance.
Explore Government and Community Aid
Programs such as emergency rental assistance, nutrition assistance and unemployment benefits may be available depending on your circumstances.
The Low Income Home Energy Assistance Program can offer support for paying utility bills, for example.
Reach out to local and federal agencies to know what’s available for potential financial support.
Prioritize Essential Expenses
Focus on necessities like food, transportation, healthcare and securing a new place to stay. Cut unnecessary expenses and redirect funds toward immediate needs.
Evaluate Your Credit Standing
Losing your home can affect your credit score, especially if it involved missed mortgage or rent payments. Check your credit report for accuracy and start working on rebuilding your credit if necessary.
If a home is lost in a natural disaster, Equifax recommends contacting credit card companies to explain the situation. In some cases, they have forbearance programs that may be able to help.
Rebuild Your Financial Safety Net
Once you have stabilized your immediate needs, start working on rebuilding an emergency fund. Most experts recommend three to six months’ worth of savings, but start where you can.
Even small, consistent savings can help prevent future financial crises.
Seek Legal and Financial Advice
Depending on how you lost your home, a financial advisor or legal expert can help you navigate next steps, such as negotiating debts or applying for assistance.
FEMA, for example, offers legal services to people who experienced a disaster.
Create a Long-Term Housing Plan
Consider your options for future housing, whether it’s renting, applying for low-income housing or planning to buy again. Continue working on your finances and credit score to make sure you’re in the best position moving forward.
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This article originally appeared on GOBankingRates.com: 9 Financial Things To Do If You Unexpectedly Lose Your House
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