Georgia Mortgage Foreclosure & Short Sale

We own two home that we cannot afford in Georgia. What are our options?

My partner and I bought a house in Georgia in 1992 with an FHA mortgage loan. We lived there for 17 and 1/2 years straight. Our existing balance on that mortgage is $21,300. In September of 2008, we obtained a HELOC from Bank of America for $50,000. We used the entire amount to purchase another home nearby, which we spent the next year fixing up using our own cash, as the $50K had been spent already on the purchase price. This second home was bought through HUD. We moved to this second home in October 2009 and plan to live here the rest of our lives. Shortly after moving to the second home, we began renovations on the first home. We put it on the market in March 2010. It has now been on the market for over 6 months with no offers. The taxes of that house (because we do not live there) have gone up a tremendous amount. Not only that, but since we are still paying an FHA mortgage there, by law, the house should be owner occupied and it isn't. I do Not want to be a landlord and rent the house out. I just want to be done with this house and all the responsibilities of it. My partner just lost his job and we simply cannot afford the expenses on 2 homes. Recently, I applied for a loan modification for the first house, but since we are not behind in the payments and we do not live there, more than likely they will deny us for the loan mod. Our next step might be a short sale, but I have heard very few of them get approved. The house is worth Less than the total balance of the 2 loans. That much I do know. I don't want us to be facing foreclosure and have judgments against us. We have money in the bank, just not enough to pay off both of these loans. The housing market in our area is not expected to recover for another 2 Years. I cannot see myself paying that mortgage every month for that long! Even at the price the house is now, we won't see any profit if we do get a buyer. I am on Federal disability and this mortgage payment takes up half of my income every month. We were told to talk to a real estate attorney, but if we can't pay our mortgages, what makes them think we can afford an attorney? What should we do?