What will happen? (Are we making this too complicated?)

[moo]

[2manybills]

I'm not sure what State you are in. If you are in a community property State, then both of you should file.

[UpsideDownMI]

If you walk away from your house, you would be better served if you both file. The first mortgage could get a judgement against your wife for any deficiency balance. If you plan on keeping the house, then maybe it would make sense filing without your wife. I would consult an attorney on this.

[eddiep]

Not sure if you realize this, but you can still keep the house if both of you file but you would need to complete the modification before you file. In your case that may be a wise strategy, in case the mod doesn't help enough you could walk away from any deficiancy if you are forced to go into foreclosure.

Bk shouldn't affect your 1st in any way, your name would not come off the mortgage, you would either reaffirm and once again accept responsibility for payment or you surrender and walk away. the second would only be stripped if it were 100% unsecured.

[hereforinfo]

Not sure if you realize this, but you can still keep the house if both of you file but you would need to complete the modification before you file. In your case that may be a wise strategy, in case the mod doesn't help enough you could walk away from any deficiancy if you are forced to go into foreclosure.

Bk shouldn't affect your 1st in any way, your name would not come off the mortgage, you would either reaffirm and once again accept responsibility for payment or you surrender and walk away. the second would only be stripped if it were 100% unsecured.

The second won't be stripped in a chapter 7, which is what they are planning. Even if the first mortgage is modified, the second still remains. Even though it's in your name only, regardless of whether you file bankruptcy the lien will stay on the home and the lender has a right to foreclose if you don't pay. They won't do that if the house is under water, but you would have to pay the loan off at some point if you ever want to sell or refinance the house.