The lender in second position can foreclose on you. They would have to pay the lender in first position (I realize that it's the same lender) the lender in second would also have to pay insurance, taxes and hoa, etc. Therefore lenders in second position are very hesitant to foreclose if there is no equity and I assume there is not much there.
The other advice provided was good advice, the other thing would be to keep paying your first lender and continue to negotiate again with the second lender for a loan modification or a short pay-off. Good luck!