It is possible to negotiate a discounted payoff on a second mortgage, sometimes with a drastic discount. If your home is worth less than the amount of its first mortgage, the second mortgage is legally unsecured. In this case, you can often negotiate a settlement for pennies on the dollar. Explain that you are unable to pay and request a payoff figure. Respond with a figure you can afford and provide evidence that your home is underwater. Remind the lender that foreclosure might be less profitable.