Catherine Bell explains the difference between first and second liens on a property. A first lien is your primary mortgage; a second lien is additional borrowing against the same property that gets paid back only after the first lien is satisfied, even in bankruptcy.
What is a first lien and second lien mortgage? So first lien mortgage is always the primary mortgage that's on the actual property. A second lien is generally a borrower has gone in and has accessed the equity that's actually in the property. With a second mortgage, generally like a line of credit, that's against the property. And so a second lien debt refers to loans that are prioritized lower than the first, first one. So higher rank debts in the event of bankruptcy or liquidation of assets. So it's just the order in which the liens are on the property. For more information, please follow us. My name is Katherine Bell. I'm with Titan Impact Group. May you never awake from the American dream.
