I entered into foreclosure in 2008 on my house. The house was foreclosed and sold in 2008 by the bank to a new owner. On my credit report, both the 1st and 2nd were charged off as bad debt. According to the credit report, the balance on the 1st was listed as zero and the balance on the second reads $76,811 even though it was charged off to bad debt. Home Loan Services First Franklin, where I did the borrowing from originally, has been bought by Bank of America. Yesterday, I get a letter from a company named Select Portfolio Servicing, Inc. telling me that they are willing to settle the debt on the second mortgage if I send them $15,362.37 (which I don't have might I add) by June 24, 2011. It was my understanding that the second mortgage was a non-recourse loan because I live in California under the California Code of Civil Procedures section 580b, therefore allieviating me from the debt tied to this unfortunate and painful outcome. The first and second mortgage were taken at the same time to make the purchase on the house. The documentation I have shows that the money went from the bank to the escrow company to the seller. Am I liable for this defaulted 2nd mortgage payment request at this time? If I am not, any suggestions on what I should say to Select Portfolio Servicing, Inc. when I call or write to them in a letter to help close this claim? Thank you all ahead of time for your support. I thought I was past this period in my life.