settling 2nd mortgage after chapter 7

[rat]

i have a 1st 190,000 and 2nd 150,000 all current with bank of america what are the chances of settling with second ? filed chapter 7 yesterday home is now worth 250,000 ,should i try to raffirm second for 40,000 if they settle .most of 150,000 was spent on home updates. any suggestions ? if they settle are they usually lump sum or can they do payments on the 40,000 if they dont settle i dont mind walking . thanks for inputs

[HHM]

You are not in a very strong position to settle. If your value is right, the second has about $60K in equity.

I don't think you will get a settlement. But you can roll the dice, keep paying the first mortgage, stop paying the second mortgage and see what happens.