HELP....Underwater and in foreclosure

[Corinne Faivre]

Here is the scenario. The condo has a first mortgage for 156k with BofA and a second for 29k with Green
Tree. The loans are baked by Freddie Mac. The condo is only worth 50k at best and is rented for $895. PITi is @ $1200 per month.The Hoa is $395.
it is seriously underwater and in foreclosure for 2 years already. The loan mod has been denied and BofA is giving the homeowner the run around.
The second mortgage and the HOA are threatening the home owner to sue for unpaid balances!
What to do???? Pay the 5k and bring the Hoa current, negotiate the second mortgage for a lesser payoff,
Keep pushing forward for a loan mod on the first mortgage????? Short sale? L/O options to someone with poor credit???? What are your recommendations to get out of this mess? Thank you for any suggestions