It sounds you already did the right thing by asking for a forbearance. I'm not sure if you discussed a modification, but that is another option. If you do not pay, then they can sue you, obtain a judgment and attempt to collect it. As I often say on this site, "You can't get blood from a turnip!" Thus, even if they sue you and your parents, and if they win a judgment (which is likely), they still need to collect it. They could do so by attaching the judgment to any property you and your parents now own or own in the future. They could also garnish wages and bank accounts to recover. I suggest that you find any kind of job to make ends meet and continue to work with Wells Fargo to see if you can get a modification to make a more manageable payment even though it will mean you pay more interest at the end of the day. Best of luck in working this out.