It is a gamble and I am not advising this, but if they have not filed a notice of trustee's sale, many people in this town/state are living for free in what is called a freeclosure. It could be days or years before they file a notice of trustee's sale and even then they sometimes don't foreclose. Again, this last scenario is a gamble and can be stressfull.
You may get a cash for keys offer from the bank or investor if foreclosed on or bought at court house trustee's auction. Many people counter the bank or investor a higher cash for keys offer of double their first offer and see where that takes the negotiation thereafter, that can sometimes backfire and trigger an eviction however but they still need to follow statutory guidelines/timeframes.
These are hypothetical examples, of a general nature and of course not legal or tax advise. Feel free to contact me now or in the future if you go the freeclosure route, I help a lot of people in default and of course every scenario is different.
Forget your worries about the 2nd- the 2nd would probably be happy to get anything at this point and can be easily negotiated with.
If your intent is to keep the home then I would suggest an attorney. Real estate agents in general do not have the license to negotiate a loan modification. See whether the folks at the Nevada Hardest Hit Fund can help you, if not you will need an attorney.
It depends on when you purchased the house, how much you paid for it, your hardships, what it is worth NOW and what you used the second mortgage for AND your income!!
There are a lot of factors involved.
I am a short sale specialist and can help you speak with your lender and see if they will allow you to do a short sale or not.
If I can be of further assistance, PLEASE contact me.
Trans-Action Realty 500