Please seek more information from your lender, and of course, seek any legal advice you may need from a reputable real estate attorney.
However, you must check with your state's statute regarding deficiency judgments on purchase and non-purchase money loans. It appears as though your state has very strict guidelines as to your rights with regards to debts and how they are categorized. Your lender may be able to provide you with the information you are requesting but I would check with an attorney to verify that the information provided by your lender is accurate. Hope that helped a little bit.
Diane Wheatley, Broker
I'm not sure I fully understand your question, but it sounds as though you have a second mortgage/Home Equity line of credit on your home, and the lender has closed this account. If that is the case (which is becoming more common due to declining home values) then you do still owe any balance on the note, but you are no longer able to access any additional equity.
For more information, contact the lender directly. If you cannot get a satisfactory answer from the lender directly, then I would recommend you speak with a real estate attorney.