Second Mortgage Wells Fargo Dilemma

[Joana]

Hello,
I am looking for an attorney to possibly represent me in a case of foreclosure.
I do have one property in Tahoe, California with 2 mortgages on it (both with Wells Fargo). The second mortgage was not taken out at the same time as the first one but a couple of years later. The property in Tahoe was a second home and the mortgage was taken for a secondary residence on that property. In January 2008 I received a bankruptcy discharge (Chapter 7). I surrendered the primary residence that I owned in Florida and decided to keep the one in Tahoe because it's value was not going down as fast as the value of the property in Florida.
I signed a reaffirmation agreement for the first mortgage on the Tahoe property but for the second mortgage, for some reason, there is no reaffirmation agreement recorded in the county records.
I have made my payments without interruption since I received those 2 mortgages and throughout the bankruptcy process, never late.
At this time the property value dropped to about 230k which is roughly what I owe on the first mortgage. The value of the second mortgage is 50k.
The second mortgage is an interest only loan and the rate is aprox. 10%. I wrote a hardship letter to Wells Fargo asking them to lower the rate for the second mortgage, make it fixed and possibly come up with a plan for me to be able to pay some of the principal back. They declined the application because of affordability even though I am paying regularly on this mortgage since I took the loan.
I decided to stop paying this loan and see if they will start negotiating.
What are the chances that the bank will start a foreclosure process on this property if there isn't any equity in it to cover the second mortgage?
If they charge it off does that mean that they sell the loan to a collection agency?
Would the lien on the property be transferred to the collection agency and those would be the people that I have to deal with?
I am not familiar with collection agencies because when I decided to file for bankruptcy all my payments were up to date, never late on anything.On the date of filing I stopped paying and moved right away into a rental.
If I filed for bankruptcy and have been discharged is there any foreclosure protection for me? Even though I live in Florida, wouldn't the property in Tahoe become my primary residence because I do not own anything else?
I would like to do anything possible to keep the property in Tahoe but I am not willing to pay the second mortgage under the current terms.
Does anybody know roughly what precentage of the total loan value would the collection agencies settle for?
Any advice is greatly appreciated.
Thank you.