Foreclosure

[madhavim]

What is the name of your state (only U.S. law)? Maryland

I have currently placed my house under short sale but have been having tough time getting buyers. It will be going to foreclosure pretty soon. I have first mortgage and the second one is home equity line of credit. From my understanding, if the house goes into foreclosure, the first mortgage will auction the house. But how does it work with home equity line of credit? Would they get anything? Or is it true that they have right to come after me, even after 5yrs for the amount I owe them? How does all this affect my credit? Will I be able to purchase property after 5yrs or so? Is it possible for home equity line of credit to take the new property under their possession even after 5 yrs?

Any advice is greatly appreciated.

Thank youWhat is the name of your state (only U.S. law)?

[FlyingRon]

In order to sell short all the lenders have to agree (or you have to pay them off).
Either lender can foreclose. The house will be auctioned off (and can be instigated by either loan). If the amount it's sold for doesn't satisfy the amount owed, yes they can come after you. I don't know what you are talking about "in five years." THey will do so in short order.

[madhavim]

Thank you very much for your reply. What I mean by 5 years is that when I talked to the representative who has the home equity line of credit (HELOC), they mentioned that even if the house is foreclosed by the other bank, if I don't pay the amount owed to the home equity line of credit now, then they have the right to come after me even after 5years. So, per se the house goes into foreclosure this month and does not get sold for the full price. The first bank will get their money when they auction the house but the home equity line of credit won't.
So, if and when I decide to buy a property in about 5 years from now - then can the HELOC bank come after the property and/or assets that I would buy in 5 years? How long does the HELOC bank have the right to come after me? Is it for just few years or is it for my lifetime?
How long will I have credit issues?

Thank you for your help!