What is a second lien

Priority

A lien is the lender’s right to be paid from the house. In a sale or refinance, liens are paid in order. The first mortgage is paid first. A HELOC, home equity loan, or home equity investment lien is paid next. What remains is yours.

“Second mortgage” is the industry name for a loan that records behind the first. It does not replace the first. Missing payments on the second can still lead to foreclosure.