Legal Question in Real Estate Law in Florida

That is absolutely true. In fact, second mortgage lenders are becoming much more active in their collection efforts.

When you closed you signed two separate and distinct documents: (1) a promissory note/equity line agreement; and (2) a mortgage.

When the first mortgage lender foreclosed it essentially eliminated the second mortgage (even though they may be the same company they still stand in two different positions and have certain rights with the first mortgage and certain rights with the second). The promissory note/equity line agreement remained intact and this is what your second mortgage lender is pursuing now.

The good news: these second mortgage lenders aggressively pursue settlement negotiations. So if you are fortunate enough to have a lump sum to offer the lender will likely accept. Otherwise any obligation to this lender is dischargeable as an unsecured debt in bankruptcy if your financial situation will not permit a lump sum payment.

I suggest that you speak with an attorney knowledgeable in bankruptcy and real estate matters. I fit that criteria and would be pleased to assist.

Best of luck