Im aware that my credit is gonna take a big hit but I want to know what’ll happen to me down the road.
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Depends on the state and bank. If you borrowed more than the home sells for in foreclosure, then the bank may sue you for the deficiency. If you lied in the application, you may get prosecuted for fraud.
In 2007ish, a friend of mine sold his house and the buyer proceeded to take out 15 home equity loans from different banks all on the same day so they didn’t know about each other. Took years for the banks to sort out that mess and the buyer, who was associated with organized crime, got away with it.
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