What happens to 2nd mortgage after home is foreclosed?

[alvin]

What happens to the second mortgage after the home is foreclosed?

Does the 2nd mortgage disappear? Unfortunately, my home was foreclosed and I thought, the 1st and 2nd mortgage disappears and the process ended. But suddenly I started receiving calls from the bank lender of the 2nd mortgage. They said I still owed them even if the home was foreclosed and if I didn't pay them, they will reported to the IRS, so they can charge it off on my paycheck. It's that true. Need some advice. Thank You!!

(I had a 80/20 loan with two different bank lenders) Oceanside, California

[Younas]

ya right irs, second mortgage is gone...there lein was on the property and property is gone. so most likely don't worry abt it, but i am talk from NY experience, i am not sure aabt Ca rule. I am pretty sure they r just tring to get wat ever they can

[Jesse Rocks]

Yup. The 2nd only means that they are 2nd in line for payoff ( to the bank anyway)...when the house sold, if it didn't sell for enough to payoff the 2nd, you still owe it.Chapter 7 is the only thing that will make the 2nd, "disappear"...

[rose]

Although the foreclosure may have eliminated all of the junior liens, the loans continue to exist. The mortgage is the security interest in the property, that secures the amount due on the loan. Even when a mortgage is removed, if the loan is not satisfied, the loan remains due and payable. The loan and the mortgage are two separate documents.