4 years post CH7 BK discharge - possible to settle 3rd mtg - HELOC?

[MyFico_704]

We're 4 years discharged - 1st, 2nd and 3rd included.  (Only been paying on 1st since).

At the time of CH7 filing the home value was only 225k and the total 3 mortgage equaled 260k.  Unfortunately I was new and unaware that immediately AFTER discharge would have been the BEST time to offer to settle the 3rd for 5-10% of the balance - Why?  Because the home was underwater (combined loans).  My BK attorney did not suggest this... all he said was "just keep paying on the first and neither the 2nd or 3rd will bother you."  - Probably true as the home was under water.

Today the housing market has recovered quite a bit to where it covers all 3 loans.  

Is it too late to offer to settle on the 3rd?

[despritfreya]

Unfortunately, now that the value of the home has recovered, it is unlikely that your 2nd will settle for less than what is owed - maybe try a loan modification.  The 3rd still sits behind two liens and may accept something less.  Have either contacted you?  Opening the lines of communication will wake them up if they have not.  Tough call.  At some point you will have to deal with this.  

Also, pull out your bk documents.  What did your "Statement of Intention" state as it relates to the three mortgages? 

Des.