It will depend on a couple things. First it will depend on the approval letter that the second mortgage sent you. Look at the laungage in the letter carefully, it is tricky, unless they are indicating a full settlement, there is a high chance that they will try to collect. The other thing is certain banks have policies that they always try to collect and lastly what is allowed in your state.
If they second does not collect, expect a 1099c, which will tax you on the debt that was forgiven.
First Weber Group
Certified Distressed PRoperty Expert