[wpa4him]

I have come to the realization that I cannot handle this any more. I will have to file bankruptcy but have a strange situation.
I work in Ca, own a house that I am renting out here but also have a home in Texas where my spouse and children live. I live with my sister.
I want to keep the Texas house. The Ca house has a first and a second mortgage and is worth only about 80% of what I owe on it, the tenant has not paid his rent this month and it is the first month I have fell behind, I also have about 80,000 in CC debt as I have been using these to pay others. If I forclose will the first mortgage be paid and will I be left holding the bill for the second? Any help would be appriciated.

[ScottGem]

If you allow the 1st mortgage holder to foreclose they will auction the house off and apply the proceeds towards what you owe. Since they have no care about the second mortgage holder they won't care whether they get paid or not. If the sale does not cover the total balance owed you will still be held responsible for it.

[CanAM]

Look into getting the lenders to agree to a short sale.
The lenfder in second position will because that will get nothing anyway if the first lender forcloses.
The first lenfder will most liking agree because foreclosure is legal expebsive for them too. And in this new mortgage market many lenders would rather short and foreclose.