Anna,

You do need to talk to an attorney. However the simple version is, if both the mortgages was purchase money, meaning you bought the home for the money they can not go after you for the deficiency. If however any of the mortgages was a refi with cash out or a home equity line of credit, then yes they can go after you for the deficiency. Based on what you are saying that the second is showing up as a judgment on your credit, my guess would be the first mortgage was purchase money and the second a heloc or refi cashout, which means that they are going after you for it ( being it has already been declared as a judgment). I would definitely contact and attorney to try to get this solved, as well as a credit counselor.

In California, purchase money is non-recourse but refi or seconds after the fact are recourse paper. For recourse paper you still owe the lender even if the house didn't cover the liability.

My guess is that the second was recourse paper, that's why it's showing as a judgment.

The bad news is, if it's recourse you still owe it. The good news is that most banks are settling out for pennies on the dollar.

Good Luck!

Rebekah

Anna,

It should have been settled prior to the sale of your home.

I have a debt counciler that can help remove those items. He is working with several clients on credit repair!

Michael Hirschtick SOS National credit rescue.

602-930-3887

Feel free to call me if you have any further questions!

Lucinda 602-799-6846

What you need at this point is an attorney. Prior to selling the home short of what you owe you should have received a letter of agreement from the lender stating what you were permitted to sell the house for.

Do not file bankruptcy.

Take a look at what Dave Ramsey says about bankruptcy. http://www.daveramsey.com