Legal Question in Bankruptcy in California

By virtue of the bankruptcy discharge, and absent reaffirmation, you're relieved from personal liability on the mortgages, but if you wish to remain current and stay in the home, you can still elect to pay off the mortgages notwithstanding the bankruptcy.

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The second mortgage remains attached to the house. It cannot be collected from you but the lien for the full amount owed remains attached to the house. You can keep the house if you obtain a loan modification that you can afford or bring your back payments current somehow. You will also have to deal with the second mortgage that keeps growing every month you don't pay it. Mortgages are secured debts. They are secured by liens on the property. Liens are not affected by bankrutpcy Chapter 7. Only your personal liability for the debts is eliminated so that you cannot be forced to pay. However, the bank can take property, which is the security for the mortgage, to get at least some of its money back.