If the property goes into foreclosure, there probably will not be any equity left over. If there is equity I don't know why anyone would do a foreclosure. If you do a short sale, there again there is probably no equity and as of 2014 there will be tax consequences. If you do a loan modification, you will have to qualify for the new payment agreement. You should contact a Realtor who can work the numbers to see if there is any equity so you don't have to do any of the above. Call me i you have any questions.
Hope this information helps.
Realtor, CDPE, CRS, ABR GRI, SRES
RE/MAX Premier Properties