Is the monthly payment on that loan making it more difficult than it should be to keep your home and take care of your family?
What if you could eliminate the payment and still keep your house? You might very well be able to file a Chapter 13 and strip that lien from your property!
Lien strips (eliminating second and third mortgages completely, including the debt) are, in my opinion, the best part of the existing law for consumers. This is available only in Chapter 13, not Chapter 7, so be sure your attorney is putting you in the right chapter. With a Chapter 7, you lose the right to lien strip!
Where the value of the real estate has fallen below the amount of the first mortgage debt, you can, after a court hearing regarding value, eliminate the second mortgage. This requires a confirmed Chapter 13 plan (and another court hearing) but is basic practice for attorneys who have the technical expertise to file these types of cases. This is a focus of our practice and gives our clients a chance to save their homes by partially eliminating or lowering mortgage obligations. This is particularly helpful during this economic time because of falling home values.