Selling house to get out of debt

Here is my dilemma:

We bought the house we now live in about 13 years ago..it was a 2 bedroom 1 bath with a walk up attic, with 4 kids we needed more room. So we put on a 3/4 dormer and added 3 more bedrooms and 2 baths. As of the end of the summer we will only have our youngest son who is 15 living with us. The house is worth quite a bit of as we are in a beautiful seaside town about 15 miles north of Boston. It is VERY expensive to live here. The house does need painting and a number of repairs to sell, but if we sold our house we could be COMPLETELY out of debt. We have paid off about $77000 in credit cards the last 4 or 5 years but still owe about $35000. My husband had to retire from law enforcement almost 4 years ago and now works for the National Park Service. Because of his back problems/chronic pain issues we don’t know how long he can work. So do we start to pile up money to fix up the house and sell it next spring..(that is our goal). We have a first mortgage that an adjustable and we pay a little less $1200 on the principal every month. We have a stupid tax 2nd mortgage we took out about 10 years ago to consolidate debt which is a much higher interest rate but we can’t refinance because of his lower earning and high debt to ratio credit rating. With both of the mortgages it costs up about 1/3 of our income every month. We have not been able to be gazelle intense as our oldest daughter came back from the middle east (she had been in the military in Israel) and had terrible PTSD. What you think about this – installment loans with bad credit for long term service? It has taken her the last couple of years to get on her feet. She is finally working full time and will be moving out the beginning of September.