I had to break a lease on an apartment. I have been paying them back what it cost to break the lease. They have now turned it over to an attorney/collection agency. The attorney's office says that if I do not pay in full they will put a lien on the home I now own and can even foreclose on my home. Is this true?

They would have to sue you and have an asset search done but I would think so, after a ruling from the court. You signed a lease so you owe them the amount of your monthly rent times the number of months you skipped out on. If a collection agency has the file and you have made regular payments though I don't think they would do this so I assume you missed some payments.

Try and call the collection agency and see if you can work out a payment plan you can afford so you can avoid a court appearance at your costs.

In most states, once a judgment is obtained, the plaintiff can file a judgment lien which, since you own property, will go against the property. They will not be able to foreclose. However, you will not be able to sell the property or obtain a home equity loan unless the lien is paid. If and when you sell the property, the amount of the lien plus interest will be paid before you get any cash in your hand. The interest rate could be as high as 10%, so this isn't something you want to let go for very long.

In most states a primary residence is exempt from being attached for unsecured debt. And this would qualify as unsecured.

At the worst, if they do obtain a judgement against you, the worst they can do is place a lien. They would not be able to foreclose or force a sale of the property.