I filed chapter 7 in 1999, I have a first mortgage and a Home Equity (2nd mortgage) on my property. I reafirmed the First but not the Home Equity. I have not paid on the Home Equity since before the Chapter 7. Now the holder of the Home Equity has asked me to reinstate the loan by paying the arrearage. Because of the Chapter 7 I don't have to pay them. If I do not, they stated they will start foreclosure. The Property is in CT and I live in FL. Even though there is a lien on the property do any statute of limitations apply to the lien?
Also, the current value of the property does not provide enough equity for me to sell and payoff both the First and 2nd. If the statute of limitations do not apply I thought about offering a settlement based on a Brokers Opinion of Value to have them remove the lien. I indicated this to the Home Equity Holder and they said they would consider an offer of settlement. I told them also if they were to foreclose they would have to pay off the First and after selling the property they would still have aloss. Please give me some advice. Thanks