Losing a spouse is devastating enough without having to worry about losing your home, too. But imagine opening the monthly mortgage statement after your husband’s or wife’s death and realizing their name is still on the loan. Perhaps they were the only person listed as the borrower, even though you’ve lived in the house together for decades. Does the bank expect you to pay off the entire mortgage immediately, apply for a new loan, or potentially face foreclosure?
The good news is that federal protections may allow surviving spouses to remain in their homes and continue making payments without immediately refinancing. However, understanding what happens to a mortgage when a spouse dies is important because the mortgage, property ownership, and responsibility for payments are three separate issues. Here’s what surviving homeowners should know before making any major financial decisions.
