If your home is worth more than your 1st and 2nd mortgages by $5,000, then the court can order the home sold to satisfy your creditors. You cannot avoid the secured mortgages by filing for bankruptcy. However, if you allow your home loans to be foreclosed, then you will incure deficiency judgments which could be discharged in bankruptcy, but only if the deficiency arises prior to the filing of the bankruptcy petition.
In short, yes you can lose your home in bankruptcy based on your posted facts.
You may want to consider contacting a local bankruptcy attorney for a free consultation to completely evaluate your use of bankruptcy protection.
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