I would try to negotiate with Countrywide first to accept a short pay on the 2nd trust deed. They should know by this time that they will get zero in a foreclosure. You might get them to release their lien for a grand or two. Then you will be left with a 1st that is a borderline short sale and a lender that is apt to be more willing to work with you once the 2nd trust deed is gone. For a little money you might well come out of this relatively unscathed.
Try this before you listen to the uninformed chimps on this board.
