Home was foreclosed 2008 and second mortgage was sent into collections?

In 2007 i began the process of attempting to make arrangements for my combo loan in a home i owned in florida. After a variety of denials for help, modifications and any type of assistance, a foreclosure in the state of Florida in 2008 was processed.
My second mortgage went straight to a lawsuit even before the foreclosure started. Nothing came out of it, it was as if they just stopped the lawsuit. There was no judgement or anymore notices or court records i could find on the record in regards to a judgement.
Then shortly after the "official foreclosure" it went into debt collections. Its been passed around for a few years and i'm not really sure what i should do.
Is bankruptcy the only solution?
The new amount is 4 times the original and just the other day after 2 years of nothing a new reporting showed up on my credit report. Can they continue to report to the credit bureaus, basically forever? Is there a statute of limitations on the collections?
Based on my credit report the foreclosure and the negative reporting from the original default will be off my reports this year.
FYI the Florida States attorney headed a class action lawsuit in which my foreclosure was deemed to be in violation somehow and both of my lenders were mentioned. There was a settlement of which i was sent 2100.00 in 2009 +/-. If my foreclosure and was lawsuit material by the state, does this impact the second being collected?
I know this is a lot of questions, hoping i'm not alone.

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