Second lien working

[Tejani Jeet Bhavesh]

How does a second lien work in a Home Equity LOC?

To better ask, if mortgage is not paid, how is the sale price split between the primary and secondary liener after foreclosure?

[Chris Seveney]

Quote from @Tejani Jeet Bhavesh:

How does a second lien work in a Home Equity LOC?

To better ask, if mortgage is not paid, how is the sale price split between the primary and secondary liener after foreclosure?

If the mortgage is not paid the first position mortgage gets 100% of their money before the 2nd mortgage/HELOC sees a penny. So if you owe $250,000 on a first mortgage and $25,000 on a HELOC. If the property sells for $250,000 or less the HELOC gets nothing, after the 1st is paid is when the HELOC gets monies.