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Is Chapter 13 our only option? Ohio

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  • Is Chapter 13 our only option? Ohio

    We had to move for work. We did a bridge loan to get a house in the new town. The bank used an equity loan to pay off the first home using the first home as the secured debt. It gave us enough to do the down payment on the second home with the secured debt on that loan being the second home only. We have not been able to sell the house. The bank will not extend the bridge loan again. We are now upside down in the equity in the first home because of market decline. Saw a Bk lawyer. His advice, to re-finance the house and keep it for a rental. When we told him that was not an option(financially) he said to do a deed-in-lieu if we could get the bank to release the debt and not issue a 1099. If that doesn't work he said we don't qualify for chapter 7 on just the house, we would have to do chapter 13. I do not need to re-organize all my debt. I need to get rid of this house. If I did not have all the monthly costs associated with this house, I would not have any CC debt, or car payment, and would probably be working on our 401k and only have our house payment for a debt. Even the pre-forclosure counselor said we would not be in a situation if it were not for this equity loan. We are not behind on any payments except that the bridge loan is due. Help?