Legal Question in Real Estate Law in California

The second mortgage, or Home Equity Line of Credit, does not automatically go away after a foreclosure. If the first mortgage holder foreclosed, then you are still liable for the second mortgage unless it is a qualified Purchase Money mortgage. Virtually all Home Equity Lines are not exempt, and therefore you are very likely still liable for the balance of the loan. To determine whether or not they have the right to collect, you need to meet with a qualified, experienced real estate attorney to review the facts of how and when you obtained that second loan. It is not likely, but possible that you may not in fact owe it.

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I have questions instead of answers. First of all, was the same lender the holder of the first and second? If the answer is yes, then the second cannot sue you under the frozen out junior lienholder exception. The second question is what balance is sought by the collection agency? A deficiency on the first? Or the balance of the HELOC on the second?