Stripping second lien, effects on ex-wife

[Steverycher]

I currently have two mortgages, both with B of A. A first worth 523,000 and a second worth 123,000. The home's current market value is $425,000 (and this is best case scenerio). I was recently divorced. The ex-wife moved out of state. I have been paying the mortgage by myself for two years. I have exhausted all savings and a 401k to stay current while I was going through the loan modification process that I was recently turned down for. I made the decision in Novemeber to stop paying on the second mortgage. I had no other choice. I am now in default on the second. The first is still current.

I have been looking into the Chapter 13 lien strip. I spoke with a lawyer yesterday regarding this and he did not want to take on my case because my ex-wife's name is still on the mortgage. We signed a quit claim deed removing her name from the title, but she is still responsible for the loan.

I cannot refi. to remove her name from the loan since the house is under water. I want to stay in the home. The bank will not work with me on any modification or settlement on the second.

Can she still force me to short sell the home even though the title is now in my name?
Is there any other way to get her name off of the mortgage or any way to proceed with Chapter 13, although risky?
Anyone been through this or have any advice?

[LadyInTheRed]

Was the second used for the purchase of the home?

[RunningMan]

Why do you want to stay in the home? You are $221,000 upside down and the payment has eaten up your savings and retirement. As Lady in Red is implying, if the second was used to purchase the house and you haven't refinanced they are non-recourse loans in California. You can just walk from the house without a BK. If not, you could surrender the house in a BK. The real estate market is not going to improve in the next few years. You could rent for a couple of years, save a down payment, and buy another house with a payment that you can afford.

[Steverycher]

The second is part of a refi that was done 6 months after purchase. I originally purchased an 80/20 loan and then re-fied into another 80/20 loan when the market exploded allowing me to pay off other debt.