Once reduced to judgment, the judgment lasts 10 years and can be renewed for another 10 years under existing law. There was talk of changing that to an even longer period. There's also the possibility of the judgment having extended life if the judgment debtor moves out of state and the judgment is transferred to that other state.
Also note there may be tax consequences on the running of the statute of limitations, the expiration of a judgment, or the compromise of a debt for less than the amount owed.
Again, an area to consult an attorney.
What you need is a process called 'lien stripping.' You will need an attorney and typically it will be one experienced in Chapter 13 filings and how to strip away a second. This is best done if the home is underwater. Let's say you have a first mortgage for $500,000 and a second mortgage for $160,000 totaling $660,000 in debt against the house. You pay an experienced and qualified real estate agent for a current market analysis on the property. If your home is now worth $490,000 in this market in it's current condition, you will want to go ahead with the lien stripping and have the 2nd removed completely, thus allowing you to keep the home and only the first mortgage on it. You can contact me privately for more information if you like at MegOharrison@gmail.com
Certified Distressed Property Expert - CDPE
Real Estate Broker and Consultant
Miller Laine Properties, Inc.