Unemployed and stuck with nothing but tough choices? You are not alone. Homeowners like caller Pam have lost home value and look to refinance mortgage loans with no income.  And as usual, providing personal finance advice, real estate advice and consumer advice on the Ilyce Glink Show August 12, 2012 on WSB Radio.

I wanted to begin the show today by talking about a caller I had while filling in on The Clark Howard Show. Her name is Pam and she called in to discuss a predicament that is all too common as folks still try to pull out of the Great Recession. She’s in a really tough spot.

She has been married for a long time and Pam and her husband are homeowners. Three months ago, her spouse lost his job and the couple is now unemployed and stuck. With money tight and bank accounts dwindling, Pam applied for a mortgage loan refinance through the Harp 2.0 program and was approved. Under the terms of her old mortgage loan, she was roughly $40,000 underwater due to a loss in home value.

The problem Pam is facing is that she’s unsure if she can cover the new mortgage payments, even at $200 less per month. In addition, she is concerned about added principal related to the inclusion of closing costs on the balance. She and her husband are unemployed and stuck with very few options.

Though I cannot make Pam’s problems disappear the way I wish I could, I tried to reassure her that the new mortgage loan, even with a larger principal, is a necessary measure. Don’t focus on the wrong things in crisis. We talk all the time about the different ways that people become financially stuck, but in cases like Pam’s, all that matters is buying some time until her husband gets a job. It might feel like the walls are closing in, but it’s important to stay focused and not lose hope.

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