Site: nolo.com
... But the second mortgage lender could, if allowed by state law, sue you personally for repayment of the ... Lienholders
Again, even if the second mortgage holder decides not to foreclose, that lender can potentially sue ... you to recover the money it loaned you if state law permits it. ... out in a first mortgage foreclosure, that junior mortgage holder usually can, depending on state law, sue ... If you settle the debt for less than you owe, you might face tax consequences. ...