After filing a chpt. 7 loan modifying the 80% of my 80/20 loan what are the 20% rights
You did not strip or get rid of the 20% second in the C7(your personal liability was discharged), so after the C7 discharge, they can proceed against the property if you don't pay. They must be cleared(paid) before you will be able to refinance or sell the property. The may not have any equity today, but at some time in the future you will have to deal with them.