In Michigan My husband's name is on the loan but not mine. Both are on the deed. Will my credit get ruined if we foreclose on our 2nd home? If we foreclose will they put a lien on our current primary residence for the balance after sale. There is no way they'll get what the loan is for, probably $50,000 less because the market is so bad. If we foreclose will they garnish our wages or deplete our savings? Since they won't get the full loan amount, is it true that the bank can come after us for the deficiency? And even if they don't since the home isn't our primary residence won't we be required to pay taxes on let's say the $50,000 app loss? Is foreclosing the best option? We cannot afford the debt if the house even sells especially after paying all the upcoming house payments and we own our other home and we are locked in a 30 year fixed mortgage with NO intention of moving ever really. Both my husband and I have EXCELLANT credit we own our cars and we have NO OTHER debt, except our primary home mortgage. NOTE: Just a redeming point we thought we sold our old home via lease to own option thing with this company 3 years ago and they basically took us for a ride made their money while the market was good and dropped the house back in our lap now that the tenants have trashed the place and stopped payment and the market went bellyup.

More... (http://www.mortgagefit.com/foreclosure/second-home.html)

(Source: mortgagefit.com)