Since you did not reaffirm either loan (the correct decision) neither loan can be enforced as it relates to the promissory note. The notes are what you discharged NOT the liens. If either loan is not properly serviced the lender can foreclose its lien as both liens survived your bk.
If you fail to pay the 2nd the 2nd has the right to foreclose. Will it? Probably not except for the fact that both loans are through the same lender.
No. Applying for and obtaining a loan modification under HEMP is not the same as signing a Reaffirmation Agreement which must be entered into before your Discharge and filed with the Court. Nor is the modification going to be considered a "new loan" (although I could see the argument). In fact, if you qualify, one of the documents you will sign is a "discharged in bankruptcy" statement that advises you that if you default under the modification the lender can look to the property only.
The problem you face with a loan mod is the 2nd mortgage. It's nice to resolve your issues with the first but you still have the 2nd hanging over your head. If the market turns around (or since the 2 lenders are one in the same) the lender may elect to take back its property. However, if it does, you have no financial exposure since you discharged the debt in the bk.
As stated above, the lien passed through your bk unaffected regardless of the equity. If you wanted to strip off the 2nd you had to do a Chapter 13 and get a Court Order stripping off the lien upon entry of the Chapter 13 Discharge.
Des.

