The first mortgagor won't take a deed in lieu, because if it did, the second mortgage would remain attached to the home. By foreclosing, the first mortgagor will wipe out the second mortgage and take clean title.
The second mortgagor won't take the deed in lieu because it would be taking the home with the first mortgage and no way to wipe it out. It does not want to pay your first mortgage.
You may be able to do a short sale, and convince the second mortgagor to accept less than full value. Or you could try to pay off the second mortgage holder at pennies on the dollar, then offer a deed in lieu to the first, or walk away from the first, which is presumably a non recourse loan.
You should talk to an experienced real estate attorney, and possibly a bankruptcy attorney.