Mortgage Reporting

You need to find out who owns your second mortgage and sort out the matter with them. After foreclosure, if the second mortgage has been charged off to a collection agency, then you will have to deal with them regarding the debt.

No one owns it now. That is the weird part. I called each of the companies that got loans from the original servicer and none of them have a record of a mortgage. I guess I just wait another 5 years for it to drop off. I haven't heard a peep from anyone since I got the 1099 for the foreclosure. Although that did show the FMV as more that the outstanding balance. Maybe they just chose to eat the difference. It was only a few thousand.

However, I guess if I do hear from a CA about it I would just go about it like any other debt, correct? Ask for validation, see what they provide and then if they provide evidence then I proceed with trying to make a payment arrangement?

A debt is never "charged-off" to anyone. A charge-off is an internal business action taken by the owner of the debt, and does not relate to any other party.
If the creditor went out of business, something happened to the debt. It did not just disappear. If their is anything inaccurate in any prior reporting of information to the CRA by the former creditor, you can file a dispute through the CRA of its accuracy, which requires the CRA to contact the dispute creditor for investigation of the dispute. If the CRA does not receive a response from the creditor within 30-days of your date of dispute, they are required under FCRA 623(b)(1)(E) to either correct or delete the disputed information. With no idea how to "correct" information that the creditor did not respond to and thus did not inform them how to correct it, the logical outcome should require the CRA to delete the disputed information.

Therefore, the fact that it is still reporting open under the original creditor would be wrong? If I sent a dispute and the Credit Bureau can't find the creditor it goes away? Should I risk opening this can of worms?