Do I still owe money after being foreclosed on if I have a second lien?

This message is intended for educational purposes and should not be used to replace the counsel of an Attorney licensed in the state of the questioner. I have seen this question a number of times. The property is taken and homeowner assumes that it is all over and out of presumably nowhere comes the deficiency judgment enforcement from either the first lien holder or the second lien holder or in some circumstances both. There are legal mechanisms by which you could attempt to thwart the deficiency judgments that they lenders will attempt to collect from you. The first one is attempting to complete a Deed In Lieu of Foreclosure (DILOF). If done properly you will be released from liability from both liens. For example, if you owed 200k on your property, 150K for the first lien and 50k for the second lien. A DILOF, done properly would require you to have your Attorney negotiate a release of the second lien (usually in exchange for a nominal amount) and sign over the deed to the first lien holder. This will effectivley stop the foreclosue, i.e. no foreclosure judgement and hence no deficieny judgment. Please check with your local bar association for qualified counsel who could direct you to the right Attorney. Visit Sulaimanlaw.com for more information. Please consult local counsel to verify the applicability of the above information in your state. Please tell me if this was helpful to you at all. Please do your research, the best kind of Client is the one who takes the time to get informed. No Attorney, Doctor, CPA, etc. is perfect, but informed Clients will always help get closer to the goal.