I live in Michigan. From my research a SOL only restricts collectors from contacting you, it does not release the lien on the home. Property liens do not expire in Michigan. Since this amount was included and discharged in my BK they cannot attempt to collect.
I would not contact them. But as I said earlier, if you do contact them, simply make an offer and nothing else. And of course only do this in writing. No phone calls, no email.
Ive been in similiar situation in Michigan for about 8 years now. There may be an advantage to having a real estate attorney look at this, but probably not until you are ready to sell or refi. Why wake up a sleeping bear!
Property liens in Michigan NEVER go away. They are not like "unsecured debt", which does have a SOL in Michigan. The question is what is the value of the lein. The value of the loan when its discharged in BK is ZERO. They can never collect on the debt, but could foreclose because they hold the lien.
I had an excellent BK lawyer who explained everything to me and it turns out he was right about everything so far. His advice was:
1. Dont reaffirm either 1st or 2nd mortgage.
2. If you want to stay in the house, keep current on the first only.
3. Offer a settlement to the 2nd during or immedieately after discharge and see what the response is.
4.. Once a year, verify with your county register of deeds, who actually holds the lien because they can be assigned or transferred without notice to you.
5. Keep communication to a minimum with lien holder. Do not give out any financial info like yearly salary, where you work, balance on 1st mortgage etc... You make an offer and let them respond.
6. If you don't hear anything back, dont worry. Send the same letter once a year and rest easy!