
Quoting
Mr. Knowitall
I urge you to consult a bankruptcy lawyer.
It may be possible to "cram down" the mortgage on your original home, if it can now be characterized as a second home or investment property, such that your mortgage balance is reduced to its market value. But I would expect your lender to try to fight that based upon your representations when you purchased that it would be a primary residence and your historic use of the home.
You may also want to discuss your options with your mortgage lender, as it may be possible to get them to agree to a short sale (where you sell for less than the balance of your mortgage) in order to avoid default or foreclosure.