A number of laid off staff at beleaguered developer 38 Studios may have to pay off a second mortgage, according to a report.
Several sources speaking to Polygon have said that despite the company telling staff it had sold homes for them, it had been unable to do so.
One former employee said that they had been contacted by their bank as to why their mortgage hadn’t been paid, despite being told the home had been sold last year.
Developers affected are thought to be those involved in to studio’s relocation program after the company received a $75m state-guaranteed loan from Rhode Island to lure it away from its offices in Massachusetts.
State officials said they “had no independent knowledge of the mortgage issue”.
The Kingdoms of Amalur developer is believed to have laid off its entire staff of 379 employees as the company struggles to meet its financial obligations.