I recently received an email from a woman who lost her husband to Cancer. She asks; What is the best way to keep from foreclosure on my home?
My spouse died from cancer and unfortunately I will receive no life insurance or pension. It looks impossible to keep up with my payments. My sweet sister has brought my payments up to date, but I don’t see how I can keep them up and she definitely can’t do any more, nor would I want her to. I feel overwhelmed with grief and then have this issue on top of everything. I need advice and obviously, can not afford it. Please help. 
As a Real Estate Agent I unfortunately hear stories like this way to often. Stories like this make it hard to keep your emotions out of it and after talking to so many people about short sales and foreclosures I have to admit it has gotten pretty much impossible to not get emotionally involved with my clients after awhile. Because of this I decided to post my response to her in the hopes that if there are others (which I know there are) that could use some hopeful advice, they just might find it and know that they too have options.
I’m truly sorry for your loss and the grief you are going through. I’m also sorry that you are going through the pain of financial problems. There isn’t anything I can say to make your loss feel any better. However, you do have some possible options regarding your home. If you have a job there is hope of keeping your home. If you are working you could apply for a loan modification. The key elements are that you are working and you have a hardship. The loss of your spouse is a qualifying hardship with many lenders. Contact Making Home Affordable They are a government run entity that will work with you and your lender in modifying your current loan. They were put in place by the Obama Administration for people just like you. You DO NOT PAY ANYONE to modify your loan. They will do it for free. I do not recommend accepting help from anyone who is going to charge you up front. This is a free service.
The modification in most circumstances reduces your interest rate. 
If you do not want to stay in the home for lack of a job or any other reason; such as, you can’t afford it then you may be able to short sale the home. (For more information on Short Sales) Place it for sale with a reputable agent. In this case you will sell your home and if you cannot sell it for what is owed on the property then the bank takes a loss. This is a good way to avoid foreclosure. I don’t know how far behind you are so I would need more info on this. If it is too late to short sale your property and you are facing foreclosure then contact your bank and tell them you are interested in the “CASH FOR KEYS” program. Many banks have an option where they will pay you anywhere from $500 to $5000 for you to hand the keys over on a specified date. The money is meant to help you move. Feel free to contact me if you need further information at Debbie Atwood Is Making A Splash In Snohomish County!
I hope this helps a little bit. You do have options. Take Care and good luck.
Serving Snohomish County, Everett, Marysville, Mukilteo, Lake Stevens, Arlington, Lynnwood, Bothell, Mill Creek, Monroe and Snohomish
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