Is there a statute of limitation for 2nd mortgages/home equity?

four years from the date of the breach of contract.

If the 2nd TD loan was not used to purchase the property, the Statute of Limitations to sue is 4 years from the date when the loan first became delinquent - when the lender first had the right to sue fro breach of the note. If the 2TD was used as part of the purchase, and the 1st forecloses, the 2nd cannot file suit for any deficiency regardless. Richard A. Rodgers, Esq. (805) 230-2525 200 N. Westlake Blvd. Ste 201 Westlake Village, CA 91362 [email protected] www.sdresq.com

Greetings. Typically the tolling of the statute of limitations becomes a consideration when a party wants to sue or has been sued. In California, it is atypical for a second lien-holder to sue a delinquent borrower. The process of pursuing litigation against a borrower is expensive and in many cases unlikely to result in a meaningful recovery (due to Bankruptcy). However, assuming the property is not sold in a foreclosure auction by the first lien-holder and you are able to re-instate the first mortgage when you become financially stable, the second lien will not go away. If the second lien has been recorded and is secured by your property, the only means to remove that lien are as follows: 1) Pay off the debt entirely; 2) Settle the debt in exchange for a release of lien; 3) a lien-strip through Chapter 13 Bankruptcy. Best, Swazi E. Taylor, Esq. www.taylormortgagelaw.com http://www.la.bbb.org/Business-Report/Taylor-Mortgage-Lawyers-100080767 (BBB Member A Rating) www.trustlink.org/Reviews/Taylor-Mortgage-Lawyers-205981463 www.yelp.com/biz/taylor-mortgage-lawyers-pasadena http://www.linkedin.com/pub/swazi-taylor/a/8a5/271 http://pview.findlaw.com/view/4347431_1