The second mortgage was used to get a home owner 100% financing usually at a high interest rate. They were collateralized by the home which is usually considered a chattel mortgage. The difference is important as an equity line is a personal liability and a mortgage is a chattel on the property. When income is fixed, how does a homeowner actually pay back what is owed on the other mortgage? At FSN we can negotiate the terms of the mortgage and often communicate with the lender on the borrowers behalf to discuss options such as lowering the interest rate or settling for a fraction of what is owed. Don't hesitate to give us a call for a free consultation. We are here for you.