Best Scenario on selling a house with a 2nd mortgage?

[Angelique Clarke]

A friend of mine in the Arlington sector of Baltimore, Maryland wants to relocate back to the South. Her and her husband purchased the house for $179,000 I believe about 8 years ago.  Some years in they ended up taking a second mortgage out, $25k, because of damage that happened in their basement. The housing prices in that area have fallen and they are trying to figure out if there is a way to comp their loss or just to accept it. There was a house that recently sold in the area for 185,000 but it was completely renovated. Most of the other houses have been in the $150k range.

The house is as followed:

House is 1,132 sq ft.

House Lot: 7,500 sq ft

3 bedroom, 1.5 bath (they added the .5 bath after they moved in)

2 story

70% finished basement

Alarm System

New Floors

New Gutters (lifetime Warranty transferrable to new owners)

3 blocks from MTA (subway)

Mortgage balance today: $153,000

2nd Mortgage balance today: $ 21,000

Any suggestions would be super helpful!!!!