Hi Kellie,

Because the home was foreclosed, what you are really dealing with at this point is debt and debt collection rather than a foreclosure action which means you should be looking at damage control rather foreclosure solutions.

In my opinion, you really need to consult with a bankruptcy attorney. USDA has different rules than what is common with conventional lending, my concern is the possibility of that debt surviving bankruptcy. Only a bankruptcy attorney in your area can give you accurate information regarding that.