Facing foreclosure after a divorce, job loss, or medical hardship

Almost no one falls behind on a mortgage out of carelessness. It's usually a divorce, a lost job, a medical emergency, or a house you inherited and can't afford. If that's you, you're not alone — and the path forward is a little different for each situation.

Divorce

When two incomes become one and neither spouse can carry the mortgage alone, selling is often the cleanest resolution — it splits the equity, removes both names from the loan, and lets everyone move on. A fast, private sale can spare a drawn-out fight over the house.

Job loss or reduced income

If the setback is temporary, forbearance or a repayment plan can bridge the gap. If your income dropped for the long term, a modification (lower payment) or selling (if even the lower payment is a stretch) are the realistic options. See keep-your-home options.

Medical bills or illness

Medical hardship can swallow the budget fast. Protect your housing first: ask your servicer about hardship forbearance, and if recovery will take time, weigh selling to eliminate the payment and free up your equity for what matters.

An inherited home you can't afford

Inheriting a house that's already behind on payments — or that you simply can't maintain — is more common than people realize. You can sell it (often as-is, even through probate) to stop the foreclosure and turn the inheritance into cash instead of a burden.

Whatever brought you here, the next step is the same: one free, judgment-free conversation about your options. We've helped homeowners through every one of these situations.

This article is general information for Washington homeowners, not legal or financial advice. For free help, call the Washington Homeownership Hotline at 1-877-894-HOME or a HUD counselor at 1-800-569-4287.