Negotiate Charged-off Junior Mortgage

I am going through a divorce and our primary residence will be going up for sale next spring. We have been current on our first mortgage for quite some time but our second has had a charge-off status since Jan. 2007. My credit report notes the account as "charged off/Past due 180 days. $65,000 written off. $5,203 past due as off Jan 2007". Now from reading a lot of the past posts I understand that this may still have to be paid, presuming it's on the title still. The mortgage was originally with Greenpoint and was sold to another bank not a collections agency. If the house sells my wife and I will still have equity to walk away with even if the second is paid in full. But my questions are, do you think I could work out a lower settlement amount on the second in order to pocket more equity for me? Or will they know somehow they can collect the whole amount and force that on me? From what I have researched my understanding was if a loan is sold to another bank in this situation it's sold for less than the balance so a compromise shouldn't be out of the question. Please advise. Thx. By the way, have you ever heard of a situation where a charged-off second never had to be paid, it just disappeared?