Ways to Keep the Home

Paying the missed amount, plus allowed costs, stops the foreclosure. Washington State law allows this until the eleventh day before the sale date. Family members sometimes help with a one-time amount when the regular payment is affordable again.

A repayment plan spreads the missed amount over several months on top of the regular payment. A forbearance pauses or lowers payments for a while. A loan modification permanently changes the loan's terms, such as the rate or length, to bring the payment down.

Lenders decide case by case, and the paperwork is heavy. A free housing counselor can submit it and follow up, and the lender must deal with a counselor the homeowner names.

Washington State has a property tax exemption and a separate deferral program for older homeowners and people with disabilities who meet income limits. The exemption lowers the bill; the deferral postpones it until the home is sold or the owner passes away.

Income limits are set as a share of each county's median household income, and they rise for tax year 2027, so more households qualify than before. Apply through the county assessor. The Department of Revenue's property tax line is 360-534-1400.

With a reverse mortgage there is no monthly payment, but the owner must keep paying property taxes, homeowner's insurance and any association dues. Falling behind on those is the most common reason reverse mortgages go into foreclosure.

Under the federal rules for the common HECM reverse mortgage, the servicer can set up a repayment plan, and can work with a borrower who is less than $5,000 behind without calling the loan due. A borrower over 80 with a critical health condition in the household may qualify for an At-Risk Extension that can last as long as they live in the home. Keep the yearly occupancy certificate up to date.

If the payments can't be caught up even with help, selling before the sale usually protects far more of the home's value than waiting. See Selling Before the Sale.