Unless your state has a statute like California does where a lender in a non-purchase money scenario receives some cash pay out in a short sale transaction you potentially can be subject to a deficiency judgment with respect to the second lona that you have written about.Assuming a deficiency judgment is obtained against you as to the second mortgage, your assets could be subject to levy in addition to a wage garnishment as to your pay check from your employer. 25% of one's net pay check per pay period is the standard rate of garnishment. I suggest that you consult with a real estate attorney further with respect to the question that you are writing about.