Sternberg Law Group


Millions of homeowners stopped paying their 2nd mortgages after the 2008 Great Recession. Contributing factors were plummeting home values, loss of income, Chapter 7 Bankruptcy filing and Loan Modifications on 1st mortgages. Some 2nd mortgages simply stopped sending monthly statements and homeowners believed their 2nd mortgages were “dead.” 

Today home values have appreciated above their highs of 2007 and 2nd mortgages are “awakening.” Not only are they “awakening,” they are being sold to extremely aggressive servicing companies who aim to collect ALL their past due payments or simply FORECLOSE.

Ask yourself: Did I have a 2nd mortgage, and if so, do I know for certain what happened to my 2nd mortgage? If you are questioning the answer to these questions, please call Sternberg Law Group now for a free consultation.


What if I filed for Chapter 7 Bankruptcy?

Unfortunately, Chapter 7 Bankruptcy does not remove mortgage liens from your home.

What if I filed for Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy does allow you to remove mortgage liens from your home, however, you must have been granted a “Lien Strip” Order by the Court and received a discharge. 

How do I know if I have or had a 2nd Mortgage?

It was common practice for people to buy new homes with both a 1st and 2nd mortgage. These types of purchases were commonly referred to as 80/20 or 90/10 purchase. 

What if I didn’t have a 2nd mortgage but I did have a Home Equity Line of Credit (HELOC)? 

A HELOC, although, not a mortgage, is still a 2nd Lien on your home and has the right to foreclose. 

What about the statute of limitations? It has been 10 years?

The statute of limitations does not apply to mortgage liens. 

Does my loan modification combine my 1st and 2nd mortgage?

In most cases the answer is no. 

Can’t I file Chapter 13 now? 

Yes, Chapter 13 remains a viable option for some homeowners to strip their 2nd liens. However, there are many variables at play here. For example, home value, amount owed on the 1st mortgage and other debts you may have. 

What should I do?

As stated above, simply pick up the phone and call Sternberg Law Group. We are happy to walk you through a free consultation and determine if you or your home is at risk of foreclosure from a “Dead 2nd Mortgage.”