If you can sell the home for more than the combined balances of both loans (including arrears), real estate commissions and closing costs, no problem.
If you can't, big problem.
Nobody's buying any house with a second mortgage on it that's in default.
Here's an example.
First mortgage 100,000
Second mortgage 50,000 plus maybe another 5000 by now in interest, fees, and costs because of the delinquency.
If you use a realtor to sell the house, commissions run about 7%.
Closing costs about 2%
You would need to sell the house for about 175,000 to cover everything.
If the house is worth less than 150,000, you're screwed if you can't come up with cash to make up the difference or the second lender will agree to a short sale.
Since you bought the house 7 years ago, before the real estate crash, it's probably worth considerably less than what you owe on it.
I'm aware I'm still responsible for the loan.
So is your Mom. I hope you understand that her credit is probably trashed by now because of your default on the second mortgage.