If that were to happen then the bank would only be able to take 25% + some cost (strictly defined). The remaining proceeds from the sale would be paid to you.

For simple math let's say your mortgage is for $100. You have paid $75. You default and the bank takes your home and auctions it off. They get $125 (gotta love how value goes up). They take their $25 + $5 for costs. You then recieve the remaining $95.

Of course this isn't counting all the interest you've paid just the principal.

Part of what made 08 so devastating is many homes were sold at a loss leading to the home owner being left with nothing.

To be clear I'm not saying being foreclosed on is nice in anyway, but there are rules that lessen the blow

To be fair at that point they're more likely to come take your income and give you a tiny allowance

Yeah but then I don't have a house again