Removing security (house) from the second note

[8itagain]

I heard somewhere that when the first exceeds the value of the house there is a way to have the second changed from "secured" to "unsecured". I am in CH 7 and my first is 395,000 my second is 100,000 and the appraisal is 360,000 (740,000 3 years ago!).
I want to keep my home and the lender is open to reducing the principal to the appraisal but then I still have the second that would kill the negotiation ... input?

Thanks!

[keepmine]

The only way to strip the 2nd is, in a Chapter 13.
What you are proposing isn't allowed in a Chapter 7.

[justbroke]

keepmine is correct. You can't strip a lien in a Chapter 7 just because it isn't "secured" by your home. In your particular situation, you'd either need to do a Chapter 13, or you need to surrender your home in Chapter 7. It is not worth it to keep a home that is underwater by over 37%.

Now, there are some tactical things and strategies you could employ in a Chapter 7. These strategies may allow you to settle the second for around 10% if you have that much cash left after exiting Chapter 7.