Some former 38 Studios employees might be lumped with second mortgages after the developer neglected to follow through on a promise to sell their old houses after it relocated them to Rhode Island.

One former employee was told last year that their Massachusetts home had been sold, yet discovered the hard way that it hadn’t after their bank contacted them to ask why their mortgage wasn't being paid.

38 Studios was working to try and get to the bottom of the notifications and find a resolution, said an anonymous official.

If the company used state-backed money to finance homes or pay mortgages while the homes were being sold, it could mean that 38 Studios violated the terms of the agreement with the state.

State officials said they had no knowledge of the mortgage issue.

38 Studios laid off all its 379 employees via a brief email earlier this week.