i had a 2nd morgage on a house that was foreclosed over 2yrs ago, now they have sent it to collection what are my options.

The second mortgage can legally collect on the mortgage after a foreclosure by the first mortgage.  Here are your options: Do nothing - I do not suggest this, they may eventually sue you for the debt. Pay the full amount of the debt - this would make it go away Settle the debt - you can see if they will accept less than the full amount owed - be careful about the tax consequences associated with this. File for bankruptcy - a second mortgage after a foreclosure is unsecured debt.  Unsecured debt can be discharged in a bankruptcy.  There are many factors that go into whether you would qualify and whether a bankruptcy is the best option for you.