If your 2nd lien was an equity loan or part of a cashed out refinance or even a purchase money HELOC, they have every right to collect. This is because after a Foreclosure that lien holder retained the right to pursue you for deficiency judgment, hence the billing statements you're still receiving.
The great misconception is people think that because you just "walk away" and "let it go to foreclosure" that that wipes your hands clean of anything having to do with the property ever again. That just isn't so. This is regardless of how much you may have struggled to obtain a loan modification when in the end, the bank just didn't give a gosh darn about you or your situation or needs.
It is only with a Short Sale that we could have worked with Both lien holders to consider your loans as "Paid in Full" and we could have gotten that in writing.
Too late for a short sale now, obviously. You should consult with a Real Estate attorney & show them all your paperwork, as them "Does my prior 2nd lien holder have the right to pursue me for a deficiency judgment and do they have the right to keep sending me billing statements? If not "what can you do for me to get them to STOP?"
I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like an attorney referral.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
100% Short Sale Success Rate in CA