Has the Death of Your Spouse Found You Unable to Make Your Home Mortgage Payments?
The death of a spouse is devastating. The intense emotional toll of losing a loved one is compounded by the practical financial realities. In many cases, the resulting loss of income can leave the surviving spouse in serious financial distress. And if the death was preceded by a prolonged illness, there are often very costly medical bills that need to be paid as well. It’s not unusual for the remaining spouse to soon find themselves unable to pay their bills.
For most people, their largest monthly bill is their home mortgage payment. When you fall behind, it can very hard to catch up. While it’s difficult to think of losing your home, sometimes getting out from under all that debt relieves a lot of stress. And if you owe more on your home mortgage than you home is worth, it makes even more sense to rid yourself of the burden. If you can’t make your mortgage payments and are underwater, a short sale is one option to consider.
If the death of your spouse has caused you to fall behind on your home mortgage payments, a short sale can help you avoid foreclosure.
In a short sale, your lender agrees to let you sell your property for less than the balance you owe on your home mortgage. To qualify for a short sale there are criteria you must meet. Every situation is unique, but the general criteria are:
- You need to sell your home.
- You owe more on your home mortgage than your house is worth.
- You have a personal financial hardship that will prevent you from making future payments. The death of a spouse qualifies as a short sale hardship.
As you look to recover financially after the death of your spouse, a short sale has benefits over foreclosure
Whether you should do a short sale or let your property go to foreclosure depends on your situation. In most instances, a short sale makes more sense than foreclosure.
- When you want to obtain a loan to purchase a home in your new location, more opportunities will be available to you if you do a short sale.
- While doing a short sale will negatively affect your credit, there are many benefits to choosing a short sale over foreclosure.
- Contrary to popular belief, you can be current on your home mortgage payments and still do a short sale. In fact, if you are current on your mortgage through a short sale, you can qualify for an FHA home loan afterwards without any waiting periods. The same option will not be available following a foreclosure.
- You may qualify for cash incentives by doing a short sale rather than going through foreclosure.
- In Washington State, an underwater homeowner can lose his/her home to foreclosure to the first mortgage lien holder and still owe the balance from the second mortgage or other lien holders.
Washington Property Solutions has helped over 1400 Washington homeowners successfully avoid foreclosure and get a fresh start, with no out-of-pocket cost to you. You can trust us to take care of all the details.
Since every homeowner’s situation is different, we always recommend that you speak with a professional who can advise you on the legal and tax implications for your circumstances. This is particularly critical when death of a spouse is involved in the sale of your home.
Washington Property Solutions offers FREE real estate attorney consultations as part of our service.
Call us at 425-381-2233 to schedule a free confidential consultation.