Legal Question in Real Estate Law in California

If you are now current on both loans, you have several months (at least) planning time. During that time, you should consider (a) whether a Chapter 13 bankruptcy filing would be helpful (and if so, whether it should be filed near your present home or your new address, and the timing); and (b) whether the lender would have an action against you on the second in light of the holding in Simon v. Superior Court (1992) 4 Cal.App.4th 63, that when the same financial institution holds both a senior and a non-purchase-money junior, its foreclosure on the senior note cuts off its rights as a "sold-out junior" lender to pursue the second as an unsecured general obligation of the borrower. The loan amounts in relation to the property value are on the high side, which I think may increase the risk of the lender acting aggressively rather than just doing a trustee sale and taking their loss, but even so, I think you are reasonably safe.

I agree with Mr. Whipple, but point out that the protection afforded by the case he cited requires: (1) you to default; (2) the first and second to be held by the same lender, and (3) the lender to foreclose by way of trustee's sale, fully completed.

While I agree with the law as stated in the prior answers, I did not read your question as saying that the same bank holds the first and the refinanced home equity loan. Unless it is the same bank holding both the first and the second, none of it applies. You should talk to a bankruptcy attorney.