2 Mortgages with Wells Fargo - Mod on 1?

[Joel Fraser]

I've just started contacting wells fargo and they first mentioned repayment plans but I don't have the available funds for the repayment. Loan mitigation also received our hardship letter as well as expense/income sheet we made along with my paystubs. I just sent it out and will follow up in a few days. I'm wondering what all my options are. Here is my situation:We purchased a home in CA in 1999 and have refinanced it at least twice since then to either pull equity out or get a lower interest rate. The current mortgage on the home is roughly $2225/mo. Summer of 2007 we moved out and stayed with family while we rented the home out so we could use the rental income of $1500/mo. to pay off bills. In Feb 2008 my job relocated me cross country and in doing so we purchased another home with a $1500/mo. mortgage. Due to various expenses (moving costs, medical bills, major repairs to the home we moved to, etc.) we are no longer able to keep up with the $725/mo. difference needed to cover the rental property in CA. The home in CA has a loan of $295 but has a market value of around $200k. The home we're living in has a loan of $185k and has a market value of around $270k. If we sold the home in CA we would probably only get about $200k leaving us close to $100k negative. If the negative balance was transferred to our new home, we still wouldn't be able to cover the new mortgage since we will lose the rental income from the home in CA. Any advice or ideas as to what will happen in my situation?