Thank you for asking your questions.
If I were consulting with you these are my questions:
1. Why do you want to sell? Why do you need to sell quickly? Define "quickly". When do you need to have your money?
2. How much do you want/need to net from the sale? (in other words, do you need to sell both?). After the current mortgage and closing costs are paid, what will be remaining?
3. What do you plan to do with the money? Purchase another home? Pay off debts?
4. Is selling your best option? Are there other options? What if the property does not sell?
The above questions would provide a Realtor with some perspective on your situation. The only reason people sell is to accomplish a goal. So a good Realtor will want to find out what you want to achieve, and based on the current market conditions present you with options.
In most circumstances when you need to sell quickly you will net less, because you will probably sell at a discount. Assuming that you have an average market (meaning a buyer'smarket), when you calculate how much cash you will have after paying off the mortgage, closing costs, etc, you need to know what that number is. One of the characteristics of real estate is that it is not inexpensive to sell. Normal closing costs are around 8%. So just make sure you are clear on what you will net.
The next thing is the "house valued at $195K". Appraised value is different from fair market value. Fair market value is different from the price a buyer will pay, who knows your market, in the TIME FRAME that you have to sell. I would have a REALTOR estimate a range of value based on the time you have to sell, compared to the average market time. If homes normally take four months to sell, and you need to sell in 30 days, how much will you have to discount off the price to sell quickly? If you are paying a mortgage, property taxes, and insurance (known as "carrying costs), take these into account when computing your net proceeds after the sale.
Often in real estate, the benefit of selling is a close call. People sell in order to accomplish something else. Sometimes once the seller gets a clear idea of the actual net profit, the decision to sell is not as appealing as other alternatives, which might include re-financing, renting out the property, and do not forget the tax consequences of your decisions.
Summary - consult with at least three Realtors, your tax professional, and perhaps a home loan consultant. Measure the cost and benefit to selling, and other alternatives. For example, the second lot valued at $40-$60K..that is a big rang of value. You need a more precise estimate...
I hope that this is helpful. Feel free to post additional details so we can help you further if you wish.