A number of former 38 Studios employees may be stuck with second mortgages after discovering that the company hadn't sold their previous homes as previously promised, according to media reports.

The Rhode Island-based Kingdoms of Amalur: Reckoning house was forced to lay off its entire staff last week, after the studio struggled with financial issues and state debts.

Several sources directly impacted by this latest problem have now told Polygon that they were under the impression that 38 Studios had sold their previous homes as part of the company's Rhode Island relocation program.

However, they found out this week that this was not the case. One former employee said that they were contacted by their bank this week, asking why the mortgage on their Massachusetts home wasn't being paid.

The relocation program was in place to aid employees in moving from Massachusetts to Rhode Island when the company relocated its headquarters, according to the report. A 38 Studios official said that the company is currently looking to find a resolution for the problem.

Rhode Island state officials said that they had no independent knowledge of the mortgage issue.