One option is to look into a loan modification for both loans. This option may allow you to reduce your payment amounts to both lenders. At the same time your interest rate could be reduced.
If you obtained an appraisal on the home that indicated the value was less than the first mortgage balance of $221,000 you could file ch. 13 to remove the second lien on the property and repay PNC 10% of its debts, depending on other circumstances such as value of your other assets and amount of your income etc.
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