[teo]

liable for your 2nd loan? hi, i heard on the radio that after the shortsale or foreclosure, the borrower is still obligated for the 2nd loan. Some says that this only happens if the 2nd loan happen to be your in your refinance but not your original purchase (buying the house with 2 loans), etc... Thanks for you help!Ah... you guys have not answer or understand my question correctly.I know that if you refinanced for a line equity (2nd loan) then you would be liable for it even after foreclosure. The question here is that when you buy the house with 2 loans (big and small), and the house goes into foreclosure then what happen to the 2nd loan, I know that for the 1st loan the bank is taken the lost and you as the borrower is taken the credit score hit.Thanks for your responses.PS: Thanks God I'm don't have this problem; asking for someone else here.

[River Euphrates]

No - you get to just keep the money you got from your second loan for free - even if you sell it, or get foreclosed on.What are you - an idiot?The only way you can walk away free and clear is if you have enough equity in the house (and can find someone to buy the house for the amount that you need to pay off both the primary and secondary loans you have against it).If you are foreclosed upon, the bank will take it upon itself to sell the house, liquidate the loan, charge you foreclosure fees, and then if you still owe money after that is all said and done with (on either loan) you are STILL liable for it.Good luck - it sounds like you might need it sometime soon.