Foreclosure happens when you fall behind on your mortgage payments and the owner of your loan (the bank) uses state procedures to sell your house in order to repay the debt. However, some homeowners simply don’t take advantage of the help available and foreclosure becomes the only option. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until their lien is paid in full. Suppose you feel that your house value has gone down and it will not even allow you to pay for the loan amount …