Can you Lose your SSI check if you forclose on your house?

by Laura
(Russellville, AL)

i have an elderly aunt that still has a mortgage. her SSI check is only $269 a month and her house payment alone is $238. She is considering letting the bank have her house back. She has been told that this would make her check be cut off. Please help!

Reply from


What an awful situation for your aunt. It's great you are helping her.

First of all, her Social Security payments should be safe from creditors. We don't know who is telling her that they aren't, but that could potentially be an illegal threat.

However, to make sure there aren't other complications that could create problems for her, our best advice is for you to make an appointment for a free consultation with a bankruptcy attorney and sit in with her while the bankruptcy attorney explains her options for letting her house go. It's not always as simple as just walking away and you want to minimize and problems, potential taxes etc for her.

Again, it's great she has you helping her and hopefully you can help her understand the best course of action.

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