Is the house worth more or less than the current balance on the first mortgage?
The second mortgage company can sell the mortgage to a collection agency, even though the mortgage has been charged off. The collection agency can get a judgment for that loan, and if the house is worth more than the first mortgage plus $100,000 (the Homestead Exemption in Idaho), the collection agency can force the sale.
However, the fact that you have filed a Chapter 7 Bankruptcy should not prompt the collection agency to pursue a judgment sooner.
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