Mortgage loan is usually non-recourse loan, which means the mortgagee the only remedy to a default is to start a foreclosure proceeding. You don't have to worry about your personal properties. That being said, however, if you borrow against home equity line or from home equity loan, you do have to pay the money back regardless whether you still own the house or not. BTW, have you tried to negotiate with your mortgagee to devise a different payment plan? Don't give up your home unless you absolutely have no other options.