Mortg. co. denied deed in lieu on fha loan. If foreclosed am I still responsible for loan & how will it affect my student aide.

Asked over 1 year ago - Capitol Heights, MD

Tried modification on fha loan. They gave me unattainable modification then said they would not do it again because 1 year had not passed. Accepted terms for deed in lieu. After 3 mos. I received notice I was unqualified. If I file bankruptcy, am I still liable for home loan and how will bankruptcy or foreclosure affect my student aide?

Attorney answers (3)

  1. William Asa Grafton

    Contributor Level 12

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    Answered . The prior attorney's answer is correct. You can discharge any remaining liability through bankruptcy. Just be careful not to try to do the bankruptcy yourself or with just a paralegal service. Hire a lawyer, because bankruptcy may fix one problem only to cause another.

  2. Timothy Joseph Mummert

    Pro

    Contributor Level 12

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    Answered . I agree with my colleagues that bankruptcy will discharge this debt. I also agree with my colleagues that neither should affect your student aide.

  3. Dorothy G Bunce

    Pro

    Contributor Level 20

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    1

    Answered . Bankruptcy will discharge any liability for a deficiency on your home mortgage. Neither should affect your ability to receive any form of student loan benefits.

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