just saw your post – 2nd mortgages are often times SOL as well. that’s why they have high interest rates. they are often backed with hard money. some helocs are different esp. if it’s an fdic lender.
there is another facet that hasn’t been discussed. on the high priced homes $2M plus. Lenders will sell off the top half or first position on the note and make back considerable money. The lenders that buy this have first crack at recouping costs via liquidation etc.
