Property Lien question

[Kim Frantum]

Has anyone ever experienced a lien on a property, an unpaid second loan that has passed the statute of limitations, a "Zombie Loan"? In this particular situation, the homeowner obtained an 80/20 loan in 2005, stopped payment on the second loan in 2009 just after modifying the first loan in 2008. Recently the homeowner has received correspondence from a collector about the debt, but the letter specifically says that due to the statute of limitations they can't legally enforce a lawsuit. However, there is still a lien on the property (through a mortgage company that no longer exists - WMC Mortgage) so they can't refi their existing loan.  Any suggestions? 

[Tom Gimer]

@Kim Frantum Every bank has a successor. WMC Mortgage's loans were sold to multiple entities... most to Litton Loan Servicing, some to Option One and some to GE Money Bank. Ocwen now services Litton's loans. That's where I would start.

That 2nd likely matures in 2035 and won't expire for a period of years after that and if that's the case it's a lien that needs to be paid and released in connection with a sale or refinance.