Good luck. My thoughts are with you.
Prominent Properties Sotheby's International Realty
If it's being foreclosed, then both the person on the loan, as well as the other one whose name is not on the loan lose the house.
If you are in a no recourse state, then the borrower may not be pursued during a deficiency judgement. However, that person's credit score will take a huge hit. Depending on the type of loan and the absence of extenuating circumstances, it may take approximately 7 years to fix the credit before that person can buy another property.
But a lot of things can happen during those 7 years, particularly since we have a huge number of foreclosures that reflect the current economic situation. There may be new rules and some adjustments to how credit will be viewed.