I just received a letter in the mail from (Real Time Resolutions) and they are telling me that I owe my entire 2nd loan to them but they are willing to settle. It was my understanding in California that if your home was your primary residence, had a non-recourse loan on the 1st and 2nd and you never refinanced then you were not responsible for any portion of the loan should you go into foreclosure. Can someone please help with a little advice? I lost a lot of money and my home! I was told that companies like Real Time are companies that buy loans like mine from the banks for a small amount of money so that they can take on the task of trying to collect more money from the borrower. I can file for bankruptcy but would like to avoid this if at all possible.

Thank you,
Frustrated guy!

Your understanding is incorrect.

This site:

The California Foreclosure Rules or “So What Happens If I Let My California House Go Back To The Bank?” : San Diego Predatory Lending (http://www.sandiegopredatorylending.com/?p=33)

Has a very good explanation of what happens in a foreclosure in CA.