Well, in the Last House chronology, all the baddies died. The only thing a sequel in that world could possibly do is show Mari's parents attend grief counseling meetings, and perhaps take a broad anti-crime stance AKA 'Death Wish' (although the perpetrators of the crimes against their offspring already fell victim to the parents hands).
If you check IMDb.com, there IS a Last House II listed, but has nothing in common with the original, no cast or crew are the same. Similar to another movie I rented once, an NC-17 version of "I'll Spit On Your Grave TOO!" which had nothing in common with the original except a title, just to grab a few more bucks from video collectors.
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