New ability of judges to modify mortgages affect Chap 7?

[reeltrouble]

Hello all..

I am having my 1st meeting with an atty next week to discuss my options, and had to ask after finding this site!

We are being forced to file due to the debts owed against our primary and investment homes. I dont have much unsecured debt, but also cannot show any verifiable income, as I took a commission only job, just this month.

We are surrendering the investment home, but want to keep our primary. The problem is we have 2 mortgages, and the home is worth less than the 1st mortgage balance alone (a common problem, I know). These loans were used to purchase the home, never any cash out from them, but I cannot afford to pay all the mortgages any longer, and have been unable to sell them, despite over 1 year on the market.

Will we be able to have the 2nd mortgage discharged as an unsecured debt, and the 1st modified under the new laws?

Thanks in advance, good luck to all... reading the posts here is really making us feel not so "alone"

[optimistic1]

No, this would be under a Chapter 13 most likely.

[biotechsolution]

the above poster is right. 2nd mortgage liens can only be avoided in a chapter 13. It also looks like the bill to modify mortgages in a chapter 13 might even be scrapped altogether.