Second mortgage and backruptcy

What is the name of your state? Washington state

If i Lose my house to a foreclosure will I have to file bunkruptcy to clear the second mortgage?

If there isn't enough money left after the forclosure to pay off the 2nd, you will still owe the money. If you cannot pay the money, you may have to file bankruptcy to wipe out the debt.

One option is this- If you know you cannot pay both the first and second mortgages, you might consider filing bankruptcy before forclosure. A good bankruptcy attorney may be able to get the 2nd mortgage "stripped" off the home.

In other words, if your home is worth $100,000, but the combined total of your mortgages is $110,000, you can get the extra $10,000 discharged in bankruptcy.

It's also important to know that a bankruptcy court will value your house at a much lower value than a real estate appraiser. They value the home based on a quick-sale valuation (what they could get for it if they needed to liquidate it immediately). The $100,000 house might only be valued at $85,000 by the court, which would allow $25,000 of mortgage debt to be wiped out in the bankruptcy filing.

So basically you are saying that i will have to file Bk either way.
If I transfer the house to someone else does the second go with it?

You can't transfer the house to someone else...you don't own it... the bank that holds the mortgage does.

If you transfer the deed to someone else, you trigger a "due on sale" clause in the mortgage. Basically, it means that the full mortgage amount comes due immediately upon transfering the deed to another party.

My ex at the tme of our divorce asked me to move out . using the excuse that since I am epileptic and did not have a job, he could take care of the kids better than I, (at that time I didnt know about the affair) I refused to leave and got a job. He has done everything he could to get me to fail. well now I have the option of restructuring the loan and carrying on . Or he could. since he is still on the deed, and mortgage.
Is It illegal for us to change places ? can I give the house back to him, since he wants it?

If both of you are on both mortgages, you're not going to be able to give him the house... you will still continue to have a responsibility to make sure that the loans are paid. If he doesn't pay, your credit can be damaged, or you could be eventually sued.

If you don't want the house, have him refinance both loans in his name only. If that's not possible, you're going to be stuck with the mortgage responsibility until he can refinance them.

Your other option is to have him move out and make the payments yourself (if that's possible).