2nd Liens, BPO, and Equity

[Mark Welp]

Hello,

I am in the due diligence phase of buying a performing 2nd lien note. The homeowner has been in the property for 15+ years and is current on the 1st and 2nd mortgage, which is good. I did a BPO (as this is my first 2nd, probably did not need to) but how worried should I be that the BPO value came in a lot less than the combined UPB on both the 1st and 2nd combined (therefore, no equity in the home at all)? I know for 2nds that you focus more on the borrower than the property, but do people worry about that (no equity on a 2nd)? Thanks in advance.