Dealing with second mortgage

[RickyC]

We were discharged from ch.7 last month.We have lived in our house 25 years.The house is worth 300,000 and our first is 207,000 and the second is at 214,000.We were a week from foreclosure and the first agreed to extend the term of the loan which lowered the payment from 1850 to 1390.My question is what could I expect to be a good deal with the second mortgage(BofA)? I can't come up with much more than 10,000 to offer for a settlement so I think that is out of the question. As far as principle reduction what percent of the loan is likely to be reduced? I won't reaffirm anything and we have the option to walk away which I think would want them to make a decent offer.Does anyone have any thoughts or experience with this situation?

[CCsAreEvil]

From what I've read in general about BofA, they appear to play hardball. Based on your given numbers, the 2nd has up to about $90k to gain from forcing a foreclosure on you. Of course, they'd have to pay several thousand in foreclosure fees, but they'd still turn a profit. If you are saying you might be able to reduce the principal on the 1st, that appears to make in even more desirable for the 2nd to foreclose.