Is this possible or even likely?

[BROKEDED]

I have two mortgages, the first is approximately $150k and the second about $105k, so $255k total. The house's current market value is maybe $195k.

Is it possible for me to file Ch7, don't reaffirm, but then negotiate with the first for a modification? At the same time or soon after offer to settle with the second for say 10-15% in exchange for it being reported as settled.

If I had to, I could and might would be willing to then reaffirm the mod with the first as long as the settlement went through with the second. Technically the mod wouldn't be a necessity if the 2nd went away.

I would then have a property for 150k but currently worth $195k. My first is currently about $1170 including ins. and property tax escrowed in. I would be hard put to find rent with the same amount of room for much less than that. (2300 sq ft)

My only fear is that the first would see the equity and want to sell it instead.

I ask this after reading CCCrazy's post about Wells Fargo's offer. My thought is that we could simply stay put and possibly sell later on and actually make a profit. That would really be my only motive. There's no really big emotional attachment...at least not right now.

[keepinitreal]

Since the 2nd has $45k equity in your house, can't they foreclose when you don't re-affirm? Then they can sell the house for $195k and pay off the 1st of $150k, keeping $45k for themselves.

[BROKEDED]

I don't know how smart they are about their foreclosures. If they checked at all they would probably figure out that they quite likely would get nothing. The last house that sold in my neighborhood (short sale) last week was purchased for $200k and sold for $129k.

But you make a good point. I'm too light on the 1st and too heavy on the 2nd.