Since they are both underwater, there is no reason for them to go after your CA home.
To qualify to Short Sale you need to prove that you have a hardship that is putting you in danger of defaulting. Hardships include finances, but they also include life changes such as new babies, job changes, moves, etc.
One thing you may not be aware of, and that you would want to explore, is this: the housing inventory is extremely low and the prices have swung upward in the last 5 to 6 months. Some homes going on the market as short sales in Sonoma County have actually gotten so many offers that they've gone far enough over asking not to be a short sale any longer.
My point is, if the market in OR is the same, depending on how far under water you are, you may be able to do a regular sale. If you don't have to short sale, you save yourself a credit problem and might even make some kind of profit. Since OR is your current primary residence (I'm assuming you've lived there for at least 2 years.) any profit you make is tax free up to $250K for a single or $500 for married couples.
If you are too far under for a regular sale, but want to try and hold on to the house, find out if the loan is a Fannie Mae or a Freddie Mac loan (80% of loans are backed this way). If it is, you could qualify for the HARP2 program (Home Affordable Refinance Program) and may be able to lower your payments enough to be able to hold on to the house. Then just rent it out and move.
If all else fails and you have to do a Short Sale, call your lender and tell them your situation in OR and ask about Short Selling. You are also going to need the advice of your tax person, a real estate attorney to review any non-standard correspondence you get from the bank during a short sale that your agent is not qualified to interrupt, and you will need a good agent schooled in short sales. Look for a CDPE qualification. That is usually a good indication that they can handle your transaction properly. Or, you can call me and I can research who might be good and send you the name of a couple of agents to interview.
For CA you can look at my blog http://www.shortsalenotes.net There is a resource page on the site with names and numbers for tax preparers and real estate attorneys.
Good luck with this!