If I foreclose on 2nd mortgage first, will that prevent me from owing a deficiency?

I bought my condo 2 yrs ago in Chula Vista California. I have two mortgages for my home. The first one the big one is interest only 4.625 wich jumps 3% in Dec causing a $ 500 hike on my monthly paymts. The 2nd one is fixed 12%. The hike is making it impossible for me to make my paymts. I tried to refiance, but I found out that the value of my home has decreased 15 thousand dollars. So my options I feel are only to really struggle with these payments on a house the is not worth what I am paying already or Foreclose. I don’t want to get another loan(Home Equity Line of Credit) to pay off my bills so that I can afford this home, which is what current lender recommends so I can keep paying. I want to Foreclose but I DO NOT want to be Liable for a DEFECIENCY if they don’t get what I owe on it. I was told to avoid that I should try to get the 2nd loan to foreclose first. Is this true? What Can I do so that I will not be liabel for Defeciency if I Foreclose. Plse help if at all possible

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