What happens to an equity loan during foreclosure?

After a default by the borrower the bank takes possession of the property and sells it.

They only foreclose on the 1st loan. The 2nd will go as a charge off as bad debt. They may sue you to get a judgment on it. I had an 80/20 loan and on my credit the 80 loan was only showing as...

When homes start to forclose, the homes around it loose value only if a lot are being forclosed

Real property is not actually owned until the property is paid for in full. A buyer of a mobile home loses all ownership rights to the property when it is foreclosed on. A resident/buyer loses...

The lender could foreclose on your house.