Legal Question in Real Estate Law in California

The general rule is yes. If the first foreclosed by way of trustee's sale, the lender holding the second became what is known as a frozen out junior lienholder. The junior lender is then allowed to sue directly on the debt.

That rule does not apply, however, if both the senior and junior liens were held by the same lender. A suit on the debt is also prohibited if the second loan would be classified as a purchase money loan, within the meaning of Code of Civil Procedure section 580b. That determination is factually intensive, and requires analysis by a competent attorney.

You may also have a defense of the statute of limitations, depending on when the breach of the second occurred. Of course, that won't allow you to clear your credit.

Probably. Normally, a lender must go after the collateral. However, it's different when the collateral disappears through no fault of the lender, as happens when the first forecloses, leaving the second unpaid and without collateral. Such a lender is called a "sold-out junior" and may pursue collection of its note directly against the borrower, by lawsuit or otherwise. Some, however, don't bother to do so.

There is also an exception if the second was part of a financing package for seller financing, or third-party lender purchase-money financing for an owner-occupied home. Borrowers on seconds taken out after the home was purchased are not thus protected, however.

Did you pay it off, or go bankrupt against it?? If not, then you owe it.