Legal Question in Bankruptcy in North Carolina

I believe you mean discharged as opposed to dismissed. In any event, your persona liability on the loan was discharged...the lien(which would allow them to foreclosed) remained. Your best bet is to contact them to modify the loan or offer a small lump sum payment.

You should discuss this matter with your bankruptcy lawyer. I assume that you have remained current in payment of your first mortgage and perhaps reaffirmed it in the bankruptcy. Since the debt, secured by a second lien, was discharged and not reaffirmed, you cannot be sued on it. Since the lien remains, the lender could foreclose, but they may not even consider it. There are internal reasons as well as the possibility that the sale will not bring enough to pay off the first and money spent on foreclosure is wasted. Thus there may be a policy to never foreclose. On the other hand, you cannot give clear title if you elected to sell. The lien does go away, but may take a long time to give you clear title. You could keep on with payment of the first knowing that you may not be building equity until the limitations runs out on foreclosure of the second. Of course, you may try to settle to secure a release.You lawyer can look at the paperwork and research the law to advise you.