I have a different reading of 580 than you and some of the other consumer foreclosure advice sites on the internet. The foreclosure on the first did knock off the second lien from title, but it did not eliminate the note. BofA now owns an unsecured promissory note. To my knowledge that note is collect-able. The one-action rule applies to the lender who got back the property. They cannot sue on the def. or on the note because they took the property back as their "one-action". They are finished as their one action was the trustee's sale. But the second still owns a note that you signed, even though it is no longer secured by real property. As for the annoyance of collections, I suggest that you do not speak to them and ignore their mail. If they are going to sue you, you will be served. At that point you can decide to counter sue or file BK or whatever makes sense.
Does anyone here have case law or something I can read that says that the holder of the 2nd has no collection rights on the note after foreclosure on the 1st? Thanks, Kristine
