my grandfather got a 320.000 dollar loan. He was on a set income and didn't qualify for this loan. They also gave him an arm loan through countrywide at 1%. Is this grounds for a forgiven mortage. He passed away and left me the house in living trust. Now the loan is upside down at 420.000. this loan was bunk to begin with. What are my alternatives?Ok that is good to know. They did put the house in my name as far as I know however his name is still on it too. I am like a crippled bird when it comes to house for this is my first house I am trying to learn everything so fast. I know this I have every stich of paperwork. I have had a loan investigator check this out already and hes says there is foul play. I have recieved 1300 dollars from the class action suit. I have had the DOJ contact me as well asking me if I am willing to testify against countrywide. My grandfather was on a set income and they put in the contract that he brought in 5600 a month. that is a lie. He brought in 1200 month. Countrywide made two contracts. One in which wasnt signed. I have had to file chapter 13 just to keep the house. I am so financially exhausted trying to keep up with this money pit. I promised my grandfather I would take care of things and I am trying but I am so worn out. Thank you for your help.