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Loosing 2nd home

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    Loosing 2nd home

    We purchased our first home (house #1) 7 years ago. A few years later, my husbands job moved and so did we. We purchased another house (house #2) by getting a home equity loan from our first house.
    For quite some time we rented out house #1 and it almost covered the cost of the mortgage and the second mortgage. We thought it was a good investment though. Then my husband got laid off from his job. He has been laid off for 8 months and our house#1 has been for sale about 1 year with no bites!
    currently we are benind on House #1 and our Second mortgage which is secured by house #1. We have been able to keep current on house #2 which we live in.
    House #1 is apprased @ $99,400. But we are asking $79,500 Still no bites
    Our debt that we would like to discharge in BK is about $79,000.
    Does BK make sense for us at this point.
    Also, I know that I can still sell my house #1 after Forclosure has begun, but what kind of time limits would I have.

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