Thanks for responding so fast. The loan was initially given to help purchase my home. I had a first and a second loan. The second was not as much as the first loan. Then about 2 yrs later I refinanced that loan and took the money. Then 2 yrs after that, the house foreclosed. Someone did tell me that the first loan the banks take care of, but the 2nd gets the shaft. Then, I was told they will probably 1099 me or something like that. If the answer is that I don't need to pay it off, what do I do? Call them? I would rather this matter be done by tax season. Or is this going to be drawn out for awhile? I, obviously, do not have the money for this loan. I also do not make the kind of income to have such a loan. Help again!!!