[Cristina M]

I have a equity loan on my house. The house is foreclosure and my question is when I sell it should I still pay the equity loan to the bank???

[Hung Phat]

If you are able to sell your property before it forecloses, all liens must be paid in full from the proceeds...same as if it were not foreclosed upon.Ethically, all loans you are accountable for should be paid, however, since this loan is secured by a property which you no longer own, there's little they could do to you for non-payment...the damage is already done to your credit rating, now you'll have to wait for it to fall off in 7 years. You could declare bankruptcy, but again, that won't do anything to salvage your credit rating...damage is done.If you are talking about a short sale, then yes, legally you are accountable to come up with the difference between the amount outstanding and the sale price...this needs to be authorized by the lending institute or your sale will fall apart at the settlement table when funds aren't made available to resolve the outstanding loan amounts.

[huale768]

all loans you are accountable for should be paid, however, since this loan is secured by a property which you no longer own, there's little they could do to you for non-payment...the damage is already done to your credit rating, now you'll have to wait for it to fall off in 7 years.