What happens once a collections compay has your mortgage?

We filed for Chapt. 7 and it was discharged March 2010. We did not reaffirm either mortgage. We have been able to keep both mortgages current until recently. Both 1st and 2nd were with BOA. BOA sent our 2nd mortgage to Green Tree for servicing in March 2011 (BOA in letter said they were keeping the note and Green Tree would only be doing the servicing of the account. Can not get Green Tree to confirm this. We live in Orlando, Fl and according to Zillow our home is currently worth 115000. the tax assor has the home valued at 104,000. We owe 141,000 on 1st mortage and 82,500 on the 2nd. We are current on the 1st but 2 months behind on the 2nd. We have contacted Green Tree to offer them 5600 to remove the lein on the house. They said they would not settle for anything less than the 82,500. They will not offer any negotions all they want are full payments. I have not read of anyone being able to work with Green Tree. I know that the 2nd can forclose if we don't make the payments and we don't owe the debt because of the bankruptcy. Do you think they will forclose since this is so far upside down? If so how long does this usually take for the forclosure and asking us to leave? Would we get a notice or will they just come and change the locks on the house? Can Green Tree call us 2 or more time a week asking for payment or what our intentions are? Not sure of the complete process and what all is involved.