I unexpectedly lost my job a week away from closing on a condominium with a mortgage.
I wasn't worried… until I realized that the mortgage is conditional on my creditworthiness remaining the same. From asking around, it sounds like no bank will lend to someone without a job, even if they have a history of being employed and enough savings to make mortgage payments for years (which I do).
I've put in a 10% deposit. I'm currently going over my options. Here's what I have so far:
Talk to my old employer and ask to stay on payroll until after closing.
Spoke to the bank, they won't lend if I know that the job isn't permanent.
Get a new job right away.
This bank (Chase) won't lend unless I've been employed for 30 days, but a different bank (Citizen's) would lend if I have an engagement letter from a new company. I'm not a fan of this option, since I wanted to take time off before jumping into a new full-time job — which my savings would've made possible.
Try to back out of the sale.
My attorney thinks that I might be able to back out of the sale and recover my deposit on a technicality. I would prefer not to do this, because it would suck for everyone involved and I like the apartment, but right now it's the leading option.
Try to pay cash, mortgage later.
I have just barely enough cash and stocks to pay for the apartment outright. I might be able to borrow money from family to cover living expenses until I get a job and mortgage the house. This lets the sale go ahead, and eventually things should end up as they would've been if I closed normally. But, this feels highly risky. Should it?
Did I miss anything? What's the smart decision here?