Legal Question in Credit and Debt Law in California

File for Chapter 13 and have the court rewrite your 2nd at a lower principal and interest payments.

Yes, $2,000 per DAY is usurious, unless the loan is in the nine figures.

You seem to actually have a true case of usery. The reason credit card companies and banks can charge more than the legal non-usery rate, is that the usery law has been gutted to only apply to the "forbearance" on collecting money. In over 20 years of practice yours is the first case I've ever seen that would appear to actually fall under the law.

Usurious is not the issue, the amount and terms are unconscionable, illogical, and contrary to public policy. The Constitution of California makes an exception for interest rate when a Real Estate Broker is involved and the loan is secured by Real Property.

$2000 per day is $60K/month=$730K per year / $420K = 173% per annum.

There are state and federal disclosures require when financing is arranged. If there was a Broker involved did you receive the disclosures, if not, then yes, the rate and terms are probably usurious and that has its own legal significance.

Chapter 13 is a viable option and depending on valuation and amount of 1st mortgage you may even be able to strip the security or DOT and pay the 2nd as an unsecured lender along with any credit card debt.