A couple of things... Right now you can't get rid of the second mortgage on your home in Chapter 7. You can get rid of a wholly unsecured second mortgage in Chapter 13.
But....
First, your lenders probably aren't eager to foreclose. Some lenders are working very hard right now not to have to foreclose, so you may be able to work something out with your lenders to get some breathing room.
Second, I expect bankruptcy laws to be modified very soon so as to allow a bankruptcy court to modify mortgages on a principal residence, so if you wait a bit you may be able to file Chapter 7, get rid of the second mortgage and cram down the first to the value of the property. There are no guarantees in life, but from what I know of your situation (and I'll grant there's a lot of stuff I don't know about it) I wouldn't be running off to bankruptcy court just yet.
This is probably a good time to consult a bankruptcy lawyer about your options going forward - Chapter 7, Chapter 13, if allowed in your district Chapter 7 followed by Chapter 13, waiting a bit, getting into court quickly.... Let a professional guide you through your options, and advise you as to their relative costs and benefits.

