I had an 80/20 loan on my mortgage, where my first mortgage held the deed. It is my understanding that the 20% mortgage holder is considered unsecured. I have lost my job, and am struggling just to pay my first mortgage, so I am behind on my second mortgage and they are about to charge it off. I understand it will go to a collection agency, but I am unable to pay them as well. So what happens? They will try to collect for the next seven years? My loan on my first mortgage is $280,000, and my house is worth 175,000. So even if I end up defaulting on my first morgtgage, they would never get enough to pay the second mortgage back, which has a balance of about 68,000. So basically my question is: What will happen over the next seven years that it stays on my credit report?Thank you Steven. When you say it was a "Purchase Money Security", what does that mean? I have read that they might sue me and could potentially garnish my future wages in a judgment? Is that not true?