3rd Mortage "Written Off". What will happen? What do I do about 2nd?

[salesdawgs]

My Ch.7 was discharged Dec, 2009. I have just been approved for loan modification through WF after 6 months. I reaffirmed 1st mortgage and want to keep my home. I have a second HELOC through WF and 3rd with Chase. Both of these were not re-affirmed through my attorney. The 1st mortgage is 222K, 2nd-28K, and 3rd-72K. My home is worth 250K, well under what I owe.
I pulled my credit report and saw that 3rd Mortgage with Chase was "written off". I did not see that the 2nd through WF was written off. My attorney said that WF and CHASE will most likely NOT foreclose since their is no equity in house and upside down by over 80K.

My questions:

A. Do I assume Chase sold my loan to a CA? If so, can a CA come after me personally for the money? Does Ch.7 prevent this from happening? What are my options?

B. Since I am on the right track with my 1st, what do I do with the second through WF?

Thanks

[SleepWellNow]

It's my understanding, if all three loans were discharged in the BK, nobody can come after you for the debt. The issue here is the liens on the property. Even if Chase wrote off the debt, the lien is still there. Since their $72K is not secured by equity, they would not foreclose. The second is a different situation. If your house is worth $250K, they are secured. It wouldn't make sense fot them to foreclose, however, because the costs would eat up the $28K and they wouldn't want to purchase the 1st to do so. Again, it's the lien you need to be concerned with.

I am in the same situation with a rental house we are keeping. The first has been modified and I have been approved for a settlement amount on the second for them to release the lien and close the account as "settled in full". The second was not secured by any equity in the house. Athough we no longer owe the debt due to the discharge, it was worth it to me to pay them to release the lien and go away. That way, I never need to worry the house will go up in value and the second will decide it is worth it to them to foreclose.

[salesdawgs]

Follow Up

Thanks Sleep Well Now...

THE BK protects us from anyone collecting debt or being sued, but the lien is what may be concerning if home prices shoot up and equity is avaiable.

You have been very helpful. I have a couple of more questions:

A.Do you recommend I work out a modification or work out with WF (2nd) so I have the best chance to stay in my home for long run? At what point will Chase (3rd) come after the home if they are in 3rd position and the 1st and 2nd are in good standing? Does Chase have to buy the loans from WF 1st and 2nd so they can collect their equity...or do I have to default on 1st and 2nd before they can start the process. If Chase has a lien, I am trying to forecast what would have to hapen for them to start the foreclosure process? (How much appreciation would have to take place?) THanks.