I am sorry to see that you are in such a tough predicament. Your specific question was if your home was foreclosed on if you would be pursued for the debt you owe for the Home Improvement loan that you have. The answer unfortunately is not a simple one. It depends on a several different variables. You may want to consider speaking with a Real Estate Attorney or at minimum contacting all of your mortgage companies directly and considering a Short Sale. A Short Sale is essentially that all lenders will agree to accept less than you owe or release their interest in your home upon successful sale of your home. Many people in your situation have discovered the benefits of a Short Sale of their former home. Good Luck to you! Please feel free to contact me with any questions you may have.