My 1st and 2nd are with the same lender. My house is barely worth the bala

Since it's only one lender, they might well enter a foreclosure action.  If you were to read your mortgage documents, I'm sure you'll find that defaulting on any secondary mortgages would constitute a default on the first mortgage.  My advice is to stick it out, unless your desire is to move, period.  With real estate, values change all the time - they go up, they go down.  At some point, as you pay down the balances on your loans, the value of the home will more approximate the debt owed and perhaps exceed it. Have you sought a modification of either or both of those loans?  That'd be a way in which you might alleviate some pain.  

Thank you for responding to my questions.  All of my payments right now are going to interest only.  I've tried for the last two years to get a loan mod through my lender but they keep misplacing the paperwork I submit, or they request additional information which is usually the same paperwork that has already been submitted.  Do you know of a reputable company I can contact for loan mod assistance?