Let The House Go

Mary has a fiancé who was diagnosed with brain cancer. How does the private mortgage insurance kick in with an estate, and how would she approach the bank to short sale the house to her if she chose?

QUESTION: Mary has a fiancé who was diagnosed with brain cancer. He doesn’t have life insurance and when he dies, she will be left with the house, which they are upside down on. How does the private mortgage insurance kick in with an estate, and how would she approach the bank to short sale the house to her if she chose?

ANSWER: You are starting your life over because he has a negative net worth. If all of this hadn’t happened, I don’t think you would have walked up to this piece of property and made an offer on it. I think you’re being pulled into this by the situation rather than by the house.

If you were my sister and called and asked me this question, I would tell you to forget the house. You have enough emotions and enough things to deal with without having to think about this. And when he passes, just spend six or eight months or a year healing, building up some cash, and thinking about your future then.

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