Am I still liable for paying my 2nd mortgage if I lost my home to foreclosure

If the foreclosure was done through a trustee's sale, as opposed to a lawsuit in court, then you are not liable, because the nature of a trustee's sale is that the process is easy for the bank but the bank misses out on the extra money. However, on a second mortgage, if the amount of debt exceeds the current value of the house, the bank does have the option of doing the foreclosure through a lawsuit in court, and if it does so, you can be held liable for the second mortgage up to the difference between the amount of total debt and the current value for which the house can be sold on the market. Banks have historically normally not bothered to go after people for such money, since the trustee's sale is easier for them to do. But these days, since they are losing so much money, they are trying to get more active in suing people whose houses are under water. The main limitation on their ability to do this is the sheer number of borrowers out there; banks do not have enough lawyers in their legal department to sue everyone who owes them, so they tend to do lawsuits in the cases where the amount of money at stake is worth it for them in light of the costs of litigation.

If the forclosure was on the first and the scond did not foreclose you are still liable to the lender for the amount secured by the second. Once the security was taked by the first mortgage the holder of the second is free to sue on the note. This situation is rampant all over the country as many people took out seconds on thier property during the real estate boom and now find that the value of the property is less than the amount of the first. During the past few months the willingnesss of lenders to modify loan terms has changed dramatically. Holders of seconds are usually willing to accept payments significantly less than what is owed. Unfortunately for you the foreclosure is done and your leverage with the second is gone.