One thing you might consider is to save a little more aggressively, and possibly make some extra payments to the higher-interest loan.
Keep on top of the market. Know what your house is worth. If the market does start to slide, try to keep some money around in case you are forced to sell, or try paying off the second really early.
That way, you always have some equity and a forced sale doesn’t kill you.
i.e. now that you know the reality of the situation, don’t just ignore it, bite the bullet now to keep yourself from a short sale later.
