Lack of agreement in rulings by the Supreme Court and by one District Court has resulted in some homeowners being relieved of responsibility of paying off second mortgages and not others. At issue is whether a house that is underwater permits a borrower’s second mortgage to be voided by the bankruptcy court-the junior loan being worthless the vast majority of the time in such cases. Bankruptcy Attorney David Chenelle recommends the following article for clarification:
http://www.ksl.com/?nid=151&sid=32386819&title=court-to-consider-when-second-mortgage-can-be-void