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Can the government get a deficiency judgment?

Almost 3 years ago I purchased a house with a government loan (USDA). This year they decided to up my payment by almost $200. I am a single mother and can not financially pay this higher amount. I have asked them to work with me and try to find out why they decided to raise my payment, but I have found no answers. I am trying my best to keep up, but seem to be falling farther and farther behind. My question is: If my house goes into foreclosure can the government try to get a deficiency judgment. In the state I am in they do not allow for deficiency judgments, but since it is a government loan does that make a difference? Also if I am foreclosed on, since it is a government loan, will it effect my Pell Grant?

Public Comments

  1. Go to irs.gov and find the irs office nearest to you. Apparently they have representatives sitting around available to answer all your questions.
  2. If you have a fixed rate loan, the payments towards your loan should not vary (unless you are late or in default). But you can expect your escrow payments to vary with property taxes.
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