The 2nd mortgage is a lien on your house. Even if you are not paying it and they filed an NOD, the SOL has not started running yet. The 2nd mortgage lien holder can just wait you out until there is either a foreclosure or you sell. Unless the loan is discharged, reconveyed, paid off or foreclosed, it will be on title.Ask a similar question
Please get a consultation with a competent bankruptcy attorney in your local area. You will want to discuss with them something called a lien strip. I can't tell from these little facts here if this will work for you but if it could, it could be God sent. Whether a lender can go after you post foreclosure has a lot to do with whether the second loan is a recourse loan or not, again something to bring up with your attorney. If this is the only debt you have and you're willing to walk away then a short sale could be the solution, particularly if the second is a recourse loan. You really want someone to sit down with you, review your assets, your debts, your income, your living expenses and give you comprehensive advice, not quickie answers with limited information about your situation. Many attorneys offer free consultations. Going now could give you time to create a strategy rather than waiting until last day. Hop on this. :-) Good luck.
I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy Attorney for a consultation. Tokarska Law Center is a Federal Debt Relief Agency representing individuals and businesses in filing for bankrutpcy protection under the U.S. Bankrutpcy Code. Kathryn U. Tokarska is a San Diego Bankruptcy Attorney, owner of Tokarska Law Center, 185 West F Street #100, San Diego, CA 92101, (619) 285-1992 www.sdbankrupt.comAsk a similar question