If you are certain that it was the 1st loan that foreclosed then is there any chance the two loans involved in that foreclosure were from the same bank? You might have a legal arguement against that 2nd being able to collect (or try). Here's what happens. When a 1st forecloses the 2nd typically gets converted to unsecured debt and then they try to collect. If for some reason it was the 2nd that foreclosed then they are giving up their right to collect straight away. But that is why you rarely see a 2nd foreclose. There is a little known case law that stipulates if both loans are from the same bank and the 1st forecloses then they CANNOT convert the 2nd to unsecured debt because they did not take reasonable action to protect their interest in the 2nd. Basically they cannot chop off their own left arm and then ask for it back. Does that make sense? So there is some chance that you really don't owe them a penny. I'll hook you up with the right guy to straighten it all out if you like.