Marketplace is community-funded public service journalism. Give in any amount that works for you – what matters is that you give today.
Question: For a couple that has a good payment history… Is the death of a spouse enough cause for a bank to foreclose a mortgage? Andrew, Berkeley, CA
Answer: Absolutely not. No way. Nyet. The bank only cares about getting the mortgage payment on time. The only reason for a bank to put a home into foreclosure is if payments aren’t being made (And in today’s environment at least some people who haven’t been able to keep up on the mortgage are able to get it modified so that they can stay in the home. ) As long as the mortgage check is cut every month the surviving spouse keeps the home. There will be some paperwork involved if the name of the surviving spouse wasn’t on the mortgage. But foreclosure on death? No.
Of course, this is a purely money and cents answer; I’m not addressing the grief and sorrow of losing a spouse.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.