I have a second mortgage secured by real estate, and that real estate was forclosed. Can the note holder of the second mortgage come after me for the balance?
Yes, you have an unpaid debt, assuming the first lienholder is selling the property, and there aren't sufficient funds to pay off that second lien. If the first lien isn't paid from the property sale, they can seek payment on the deficiency as well.
In some cases if they do not pursue payment and you don't offer it, they will charge the debt off as uncollectable. Eventually the amount you owe, and that the lender believes will never be paid, can be reported to the IRS as income, which is taxable income.
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Yes, you have an unpaid debt, assuming the first lienholder is selling the property, and there aren't sufficient funds to pay off that second lien. If the first lien isn't paid from the property sale, they can seek payment on the deficiency as well. 