How To Help an Elderly Widow Facing Foreclosure

The prospect of foreclosure can be frightening for anyone, especially for an elderly widow who may have health problems or a limited fixed income. Failing memory or dementia may have resulted in the widow failing to make mortgage payments as agreed, or her financial status may have changed and she simply can no longer afford the mortgage payment at its current amount. You can assist the widow by making sure she receives advice for avoiding foreclosure.

• 1

  Gather--with the widow's permission--copies of all correspondence related to the foreclosure, including statements, late notices and foreclosure notices. Also gather information on the widow's income and expenses, including bank statements and monthly bills.

• 2

  Make an appointment with a nonprofit credit counselor approved by the U.S. Department of Housing and Urban Development. Visit the HUD website to find a local counselor specializing in foreclosure avoidance (see Resource section).

• 3

  Take the widow to the appointment. Allow the counselor to review the widow's foreclosure situation along with her debts and expenses. Have the widow participate in the conversation as you discuss the circumstances behind the foreclosure proceedings. Ask the counselor for a foreclosure avoidance strategy based on the widow's situation. Possibilities include mortgage modification, which allows the lender to completely rework the terms of the loan so that the widow can afford it. Or the counselor may suggest seeking forbearance, which allows mortgage payments to be reduced or even suspended while the widow works through a temporary financial crisis.

• 4

  Make a conference call to the lender. Include the window, the credit counselor and yourself. Allow the credit counselor to lead the conversation and act as an official representative of the widow. Discuss various options for stopping the foreclosure. Continue to help the widow by staying in touch with the credit counselor and making sure the widow follows up on any commitments made to the lender, such as agreeing to make up missed payments by a certain date.