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Home Eastman Kodak and Unemployment ... Now What?

Eastman Kodak and Unemployment ... Now What?

You Are Never Really Prepared to be Unemployed

This week Eastman Kodak filed for Chapter 11 Bankruptcy. It was not a shocker, as their turmoil has been reported widely for a long time. But, there is something revealing about the event to make it news worthy. Eastman Kodak, started in 1878 by George Eastman, was an icon of American ingenuity. The idea of taking a strip of cellulose, coating it with a photo sensitive material and providing photography to the everyday masses, made Kodak a Dow 30 stock for many decades.

My Kodak Moment

I had been with Eastman Kodak for over 15 years when I received a call from my manager requesting I meet with him in October of 2000. Not an unusual event. As we sat across from each other, Kevin began to tear up. Kodak was going through it's ninth round of layoffs since I had joined them and I was aware of what was about to happen.

"Rick, this is difficult, but our division is laying off 180 employees for budget purposes." One hundred and eighty represented about a third of our division. How did I win a seat on the bus out the door? My salary, travel and expenses. As a Regional Marketing Director, my travel and expenses alone were about a $1,000 a week.

But, This Blog is About What To and What Not to Do When You Are Unemployed

The first thing you have to get over is the shock. It was not a shock to be told I was unemployed, but it was a shock to be unemployed. There is a difference. When I was told my number was up, I was not totally surprised since lay offs and been an ongoing event. But, told on a Friday and getting up Monday with nowhere to go was when reality set in. Especially when you love what you were doing.

  • Tip One - Don't hide your head in the sand. Go online and find a checklist of activities to find a new job.
  • Tip Two - Face the Budget. You have so much money and you have no idea how long you will be on the search.
  • Tip Three - Pay attention to your housing.
Is Owning Your House an Asset or a Liability

Ask yourself this critical question right away. Do I want to stay in this house for the long term? Why is that an important question? No two people have the exact situation. You could be upside down on your mortgage or you could have quite a bit of equity. You could be in a position to find a job quickly or you could be out of a job for a long period of time.
If you want to keep your house and preserve your cash, you may want to consider forebearance. On January 11, 2012 Fannie Mae introduced new guidelines for unemployed mortgage holders. The program, Fannie Mae Unemployment Forbearance Program, allows a borrower to obtain hardship assistance and takes effect March 1, 2012. The Fannie Mae Unemployment Forebearance Guidelines are worth a review.
Short sale of your home is also a possibility, if you are upside down on your mortgage. There are many myths about short sales. The important thing to remember is that prior to being unemployed, you might not have qualified for a short sale because of the "hardship" requirement.
The Most Important Thing to Remember is to Get Help.

Time is important. The sooner you investigate, the more options you have available. As time goes by the options become fewer. You could begin with forbearance and then maybe qualify for a loan modification or possibly you would prefer reinstatement. You can find a complete list of options at my Red Baron Short Sale Ace website.
If you need help sorting out your options and developing a plan, whether to stay in your home or whether now is the time to sell, please call me right away while we have time to look at more than one option. Call me direct at 813 340 6828.


Posted Sunday Jan 22