Home equity loans/second mortgage and foreclosure?

Does anyone know the actual laws about this? If you lose your home to foreclosure, and you have a home equity loan, I mean obviously you should still continue to pay. But I've gotten mixed opinions on this and just wondering... are you completely and legally still obligated to pay that off or since they have lost... show more Does anyone know the actual laws about this? If you lose your home to foreclosure, and you have a home equity loan, I mean obviously you should still continue to pay. But I've gotten mixed opinions on this and just wondering... are you completely and legally still obligated to pay that off or since they have lost their security can you safely/legally just let it go? This is not in my nature but well we're about to lose our home, and money is insanely tight (that loan was to do work on the house we're losing) so as HORRIBLE as it sounds I'm wondering if we have an option to let that go with the home so we can start to build up an emergency savings account (as we have 0 in savings right now.)
Update: no we have no options, we are way too far behind, and we do not have the means to pay for a mortgage and rent in another place (we're Military) our only luck would be it selling, but well clearly that isn't happening. we accepted a long time ago that this could happen I just want to know about that other loan. show more no we have no options, we are way too far behind, and we do not have the means to pay for a mortgage and rent in another place (we're Military) our only luck would be it selling, but well clearly that isn't happening. we accepted a long time ago that this could happen I just want to know about that other loan.
Update 2: yep but we can't pay back money we don't have. we do have it listed for sale, it has been for almost a year! We've lowered the asking price drastically. All I want to know is what happens leagally if we decide to let the second loan go with the foreclosure? I haven't decided 100% if we'd do that... show more yep but we can't pay back money we don't have. we do have it listed for sale, it has been for almost a year! We've lowered the asking price drastically. All I want to know is what happens leagally if we decide to let the second loan go with the foreclosure? I haven't decided 100% if we'd do that but I just w
Update 3: yep but we can't pay back money we don't have. we do have it listed for sale, it has been for almost a year! We've lowered the asking price drastically. All I want to know is what happens leagally if we decide to let the second loan go with the foreclosure? I haven't decided 100% if we'd do that... show more yep but we can't pay back money we don't have. we do have it listed for sale, it has been for almost a year! We've lowered the asking price drastically. All I want to know is what happens leagally if we decide to let the second loan go with the foreclosure? I haven't decided 100% if we'd do that but I just want to know what our options are and what our obligations would be legally. re: taxes, laws, anything.
2 answers 2