The District Chronicles

Issue date: 7/6/08 Section: Business

Media Credit: Freddie Allen

Dear Ms. Mortgage Maven,

My husband died about a year ago. I am now nine months behind on my mortgage. I am a senior citizen and on a fixed income of about $2,400/month. I just took in a boarder and got a part time job, and I make another $1,200/month from those two things. My mortgage payment is $2,600. I am looking for another full time job but I haven't found anything yet. I also have a terminal illness. I am hoping that the mortgage company will reduce my mortgage payment to about $1,800/month. How can I get the mortgage company to do this for me?

Thanks for your advice.

Anonymous

Dear Anonymous,

You certainly have my sympathy, for the loss of your husband and for your illness. You are in a really tough situation. Unfortunately, choosing to stay in your home would only make matters worse. And honestly, I do not think this is a fight that is worth your time, energy and effort to fight.

You are almost one year behind on your mortgage, and to make it work comfortably for you, you need the lender to accept almost one third less of a monthly payment. Even if the lender agreed, which I am not so sure it would, such an arrangement would only be temporary.

Lenders generally will lower the monthly payment for a limited period of time, say two or three years, to allow borrowers time to get back on their feet after some sort of incident such as illness, job loss, etc. The whole idea behind this temporary reduction is that at some point, the lender will recoup its money. In your case, you are on a fixed income and have a terminal illness.

If you already told the lender about your illness, I doubt the lender would even entertain entering into such an arrangement with you.

However, I have to wonder why, as a senior citizen with a terminal illness, you want to knock yourself out paying for a mortgage. Working a full time and part time job at the same time is stressful and difficult for a young, healthy person. Do you really want to spend the rest of your life working 60 hours a week and taking in boarders to pay for your mortgage?

Have you thought about deeding your house back to the bank and finding an apartment that you can easily afford? Somewhere you can live without having to work so that you can focus on being as happy and healthy as you can be, for as long as you can be. And with your illness, wouldn't it be easier for you to get the medical care you need if you didn't have to work 60 hours a week?

Please consider doing a "deed in lieu" of foreclosure. Ask a non-profit loss mitigation counselor to negotiate this with the lender on your behalf. I know moving will be tough and stressful and that you do not want to lose the marital home, but choosing to leave on your own will be a lot easier than being forced out. It seems like the best way for you to be as healthy as you can be for as long as you can be. Best of luck to you. Jessica White, also known as "Ms. Mortgage Maven," is a senior mortgage consultant with Tenacity

Mortgage. Call or email her to discuss your home purchase or refinancing needs, including FHA and VA loans. She can be reached at 202-607-4449, Jessica@ msmortgagemaven.com or jessicawhite@tenacitygroup.com. You can also apply online at www.msmortgagemaven.com.

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