Product: Consumer Loan

I came to USA two years ago following the American dream and the reunification with my mother and my fianc. 
Months after my arrival my fianc got pregnant and having no place to live together we decide to search for a place to so. The rents were so expensive that my salary and lack of credit history at that moment was not enough to cover all the expenses and we thought it could be better to invest in a property. 
With the help of my uncle we subscribed to all existing governmental institutions as XXXX but purchasing through this institution was not possible since every time we found something according to our necessities and resource the bid was not sufficient. After expending months trying to purchase this way and having no luck I decided to purchase through the county auction a foreclosure property. 
My uncle requested a home line of credit over his already full paid house, {$150000.00}. Finally with that money I was able to make the purchase for a XX/XX/XXXX home on XXXX XXXX. The house was in pretty bad conditions and needed a lot of fixing which I did my self with help from my family and friends at a cost of around {$50000.00}. 
On XX/XX/XXXX I tried to pay my property taxes and to my surprise they were already paid so I contact the payee and requested an explanation. They never came back to me with an answer but instead a few months after I received a visit from an individual advising me that the house would be foreclosed in a few days. I never received a notice or citation. My address and information was register at the county since I obtained a title certificate signed by the court. 
To my surprise I purchased a second loan. If the house was on the market for sale for few years and no one purchased why the first lender did waited for the second mortgage to foreclose. I would agree if there was a lien on the property for other matters but for a mortgage? 
I look at it as a scam. I have lived on the premises for a year and a half and after that time and after my claims to the property taxes payee is when the other lender wants to claim. 
Now they want me to pay {$230000.00}. The house is not even worth that amount and if you add the {$200000.00} I already invested the total would have bought me a brand new home. 
The new constructions in the county could be only afforded by reach people then what is it left for the medium class families? According to the attachment they preferred a bankruptcy. 
I personally think that they have received a lot of powers and authorities. The government fills up their pockets with the people money but they 're not satisfied, they want more. 
I would like you to understand that I 'm not an investor that I purchased because my family needed a place to live. I do n't want to lose the house. I own my uncle {$150000.00}, that there are not affordable rents or constructions. That all is left are pure foreclosures and now I should pay for it {$400000.00}. I 'm a young person working and studding at the same time so as my fianc and doing our best to raise our daughter. 
Is there any law that protects me and my family? Are the United States Laws made by the people to the people? 
I 'm in disposition to give you all details on my case if you need them in order to have an answer from you. 
Respectfully