My home is worth 100k with 90k due on first mortgage with a 2nd mortgage of 40k.....We plan to file Chapter 7 and try to keep the home. Is there a way to default on the 2nd mortgage without losing the home? 
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Hmmmm
I don't think there is. Even though they are undersecured they still have the collateral of the $10,000 in your house. If you file and don't reaffirm they will be able to foreclose when you fall behind (even by a day).
Talk to an attorney. I don't know if you can lein strip a mortgage in a chapter 13 or not (that is, discharge the uncollateralized part--$30k--and reduce the second mortgage to the $10k.
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