Eliminating 2nd mortgage that has been charged off for over 9 years

#1
My father-in-law originally had an 80/20 mortgage, with the 20% being a 2nd mortgage to avoid PMI when he bought his home. The 1st and 2nd mortgage were with the same lender Nationpoint. He had a loan modification which covered the 1st mortgage, but somewhere along the years, he never received statements for the 2nd. Just recently he started to get statements from a debt collector which showed he was 3486 days delinquent on his 2nd mortgage. We had tried to obtain a HELOC earlier this year, but had no idea that the 2nd mortgage was still on the title because it had been over 9 years since we heard anything about the 2nd. We have not contacted SLS, who is the debt collection company. Should we be trying to request a release of lien from Nationpoint on the 2nd...if they still have the lien. According to the county records on the title search, the trustee is Rockwood Title and Mortgagee is MERS AS A NOMINEE FOR LENDER NATIONPOINT, A DIV. OF FFFC, AN IP. SUB. OF MLBAND T CO., FSB - DOT. What should be our next step?
 
#2
Clearly, there are two loans. And they don't just disappear, even if there is no contact. You have to contact the servicer(the collector), or better if you can communicate with the note holder(not easy). Ask them what they want, which obviously is money; all of what you have. You know you have equity, and they know that too, so they would want you to use that equity to pay them out.

More and more people are showing up with the same issue. They kept their home by paying the 1st, and not paying the 2nd. The 2nd is stuck in limbo, and scared to foreclose. Down the line, they have over 50k or even 200k in equity, and thinking its time to cash out the equity by selling or refi. Finding out that the 2nd is stopping them in the process. Eventually, they will figure out it is barely enough money to pay out the 2nd; probably lose a little too. So the whole thing is just a dream.