Legal Question in Real Estate Law in California

A second mortgage IS a lien on the property.

Ordinarily, the holder of any mortgage (first, second, etc.) can foreclose when, and only when, the borrower defaults. Even then, the lender desiring to foreclose must follow some rather lengthy and technical steps involving notices, etc., that take several months to carry out after the borrower defaults.

Any number of major breaches of the loan agreement can be considered defaults, but by far the most common kind of default is to stop making payments. Other examples of defaults under most loans would include failure to carry insurance, failure to pay property taxes, selling the collateral, etc.

When the holder of a second forecloses, the buyer at the foreclosure sale takes title subject to the lien of the first mortgage, which remains in full force and effect. This makes holders of second deeds of trust somewhat less prone to foreclose, especially on upside-down properties.

Get thee to bankruptcy court, where a Chapter 13 can stop all foreclosures, and also wipe out or reduce the principal and interest on your 2nd, in many cases.

Yes, a second mortgagee can foreclose on property, and the deed of trust securing the loan is already considered tantamount to a "lien."

If there is no equity in the property for the second, they can relinquish their lien and sue you personally in most cases. Contacting a bankruptcy attorney is probably a good idea.