Debtors filing chapter 13 bankruptcies may be able to eliminate their obligation to repay their second mortgage and still retain their home.
How it works
In order for to eliminate the mortgage and keep your home the value of your home must be equal to or less than the value of the first mortgage.
about chapter 13 bankruptcy
In chapter 13 bankruptcy the debtor makes a reasonable monthly payment, based on the debtors' income and expenses, for either 3 or 5 years. After making all the required payments the debtor will receive a discharge of her personal obligation to repay all most all of her debts and the judge will also order the lien, the mortgage, removed at the registry of deeds.