I would rather have a 2nd lender behind me. If the borrower defaults on the payments the 2nd lien holder (in Calif.) will cure the default on the first to foreclose on the 2nd. If 2nd lienholder does not cure the first loan default then the first is protected by whatever equity remains. If the first loan is greater than 75-80% LTV then a probable loss will occur. Bottom line the borrower wants to avoid default and the 2nd lender also wants to prevent total loss of value of the 2nd loan. Therfore two parties are concerned about payments on the first loan.