What statute of limitations? If it is a mortgage there was both a note and mortgage/deed of trust. Even if the creditor were required to enforce rights on the note within 4 years on penalty of being statutorily barred, the creditor still has a lien on the collateral.
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The above attorney is correct. You may want to look into settling the 2nd mortgage if you have a significant lump sum, or look into chapter 13 bankruptcy as a way to possibly strip the second mortgage off, depending on your other circumstances and whether this would be a net benefit for you. Under California law, it is likely that there was no personal liability anyways on this loan - but they still have the lien on your house which is what matters.
Hope this helps.
The problem is that this is a SECURED LOAN. It is secured by your house. First the maturity date of the loan must pass (is this a 30-year loan? Is it a 15 year loan?). If it is a 30-year loan, the 30 years must pass and THEN, the limitations period kicks in. So this loan will probably hang over your head for a very long time.
Actively practicing law in Texas. Inactive licenses in Arizona and Georgia. All answers are general in nature and no attorney/client relationship exists in this forum.