what happens if you default on two morgages?

What you describe will result in a foreclosure. In a foreclosure, the lender follows your state's procedures to evict you and then take legal control of the property. After doing so, it will sell the property. If the sale price is less than the balance due on the loan, this shortfall is called a deficiency balance.

Is the market price less or more than the balance due on the loans? If the market price is more, then sell the property yourself. If the market price is less than what you owe, then the question becomes, "Do I have legal liability for the deficiency balance?" In some states the answer is "no." In other states, the answer is "maybe." And in others, the answer is "yes."

You did not mention in which state the property is located. Therefore, it's impossible for anyone to answer your question. To answer this question yourself, see the Sources below. Consult with a lawyer to get advice.

It depends. If you can show that you are effectively bankrupt, the bank will probably not come after you. But if you really can afford the loans, the bank can sell the properties and then sue you for the remainder.

Even if the bank does not sue you, they might report this to the IRS and you will owe tax on the debt forgiven - and the IRS will not let you off paying.

Will I be free and clear financially?

Not if they sue. Which is very likely. Especially if you can afford to pay - and just don't want to.

they will sue you for what you owe and your credit will be ruined. If you can afford the payments and don;t want the properties, sell them

Your credit gets pretty well destroyed.

If you make enough to pay it, what's the problem?

Will I be free and clear financially?