I had a house in GA which is foreclosed. I also had a second mortgage on it for $36,000. The collectors are calling me daily to pay the debt. Am I required to pay back the 2nd mortgage even though it was secured against my house? What can the debt collectors do if I am not able to pay it back?
Definitely seek legal advice like Amuck suggests! Also, an initial consultation with an attorney is generally free but be sure to ask up front when making a consultation appointment.
I also think you should get advice from at least two real estate attorneys and also two attorneys who specialize in bankruptcy. And ask all of them about both the second mortgage issue and about bankruptcy because you'll gain more knowledge that way and it will help you decide what to do and whether you actually need to hire a lawyer or not.
If you end up opting for bankruptcy you definitely need an attorney for that because the laws continue changing and you certainly wouldn't want to go through the entire process on your own only to have it thrown out by the judge in the end.
And be sure to get what the attorney fee will be in writing. Any honest attorney worth their weight charges a flat fee and not by the hour for a 'simple' bankruptcy.
Oh! And check out current 'collection' laws because those company's can not harass you (and calling daily is harassment) but you have to take certain steps first to advise them ... (I would do it in writing sent certified and signed return receipt requested and keep copies of everything and a detailed journal of each and every phone call)
Contact a real estate attorney to find out for sure. Foreclosure laws vary from state to state. I do know that lots of people who have been foreclosed on have also had to file bankruptcy. It shouldn't cost much for an appointment to talk to a real estate attorney, and this is a question you really need to have answered.
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