My Husband Just Died and Now I Have an Unaffordable Mortgage and Bills. - Phyllis

“Dear Steve,

Four years ago my husband had a stroke and was unable to work. we have gone thru all our money to stay in the house. my husband just died and now no soc sec check. tried loan mod and was turned down and said I did not send in what was ask for .I told amber that was not true and she checked and said i was right and they would re submit the paperwork but told me that It would not do any good. so was down again. my credit is screwed from all the dr. bills and others. I have about another month of money to pay on loan. all i wanted was to lower payment so I could stay. I am trying to sell now but market is still slow. maybe they could work with me till i can get the home sold. bank of america

What to do?

Phyllis”

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The Answer

Dear Phyllis,

First, I’m so sorry to hear about the passing of your husband. These are very tough times indeed.

I think this financial situation goes back to the point where you started draining assets and cash to continue a situation that was not affordable. At that point several different solutions could have been pursued, including a short sale.

But based on what you’ve shared with me, the current situation appears to be more limited in options.

What it appears we have here is a reduction in income, the elimination of cash resources, and an unaffordable house. Pile on that all the other bills and it certainly looks like a situation that will not be survived without some definitive intervention.

I would suggest this is your opportunity to get a fresh start and a second chance. To eliminate all the debts and hand the house back to the bank. All in an effort to get your current life to fit within your current income. Ultimately, that must be the goal and the reality is there is no other logical end game.

You should meet with a local bankruptcy attorney and discuss a strategy for dealing with all of this debt. You can click here to find a local bankruptcy attorney to meet with for free.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

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