I need help on the loan mod

[00zx6r]

We bought our home 385k over 2 years ago as primary resident. The loan is 80/20. First is 305k fix 6.875 with Litton loan and the 2nd is 80k balloon fix 9.875 with Ocwen. The house is worth about 240k now.
The payment for the 1st is $2000, the 2nd is $660 and property tax is $650 with all other util bills and car payment end up to $4800/mo. I bring home now $3400 (used to make extra $1000-$1500/mo) plus some saving so we did survive in the last over 2 years.
I am now lost some extra income from side jobs and cannot make a payment and trying to do loan modification with Litton. Do they care if I make a payment on the 2nd or not?
Since the value of our house less than the first mortgage I am thinking to tell Litton that with their help and not making the payment on the 2nd I am able to keep up with the payment.
Thanks for your advice!