2nd mortgage on property that is in forclosure

[rpeterson]

Hi, I am searching for some information. My husband and I bought a house in 1999 and took out a 2nd mortgage on it in 2002. My husband's job moved us, so we decided to rent the house. Our landlord company took us for a major ride skimming about $500 per month from us. We called a real estate person, and tried to sell the house, she claimed that we would have to bring atleast $20000 to closing. We don't have $20000, so we have decided to let the bank have it back. The house will probably bring what we owe on the 1st mortgage, however the 2nd mortgage is my concern, what is going to happen?

[HHM]

Odds are you will be held personally liable and it will become a general, unsecured debt. It will depend on the law of your state...but again, as a general matter, you will be held liable to pay the deficiency.