They mostly will not foreclose, however the 1st mortgage gets notified when you are late on all secondary or subsequent loans-the first mortgage will usually step in and buy the 2nd. However, remember the 2nd mortgage can still possibly come after you for payment through various ways and even possibly send you a 1099 for the write off of debt. I would highly recommend doing a short sale versus just letting the home foreclose. Also, I would like to suggest you seek the advice of a real estate attorney and possibly your account to find out what other implications will affect you in the future.
Much success to you,
Heather Paul, Realtor
(310)586-0364 or (424)625-1037... more