Finance
What is a 'second mortgage' in Rhode Island?
AThe second loan application filed by a borrower
BA junior lien on the property subordinate to the first mortgage, allowing additional borrowing against the property's equity✓ Correct
CA government-backed loan for second homes
DA refinanced mortgage replacing the original
Explanation
A second mortgage is a junior lien on real property, subordinate to the first mortgage. It allows the owner to borrow against their equity. In foreclosure, the first mortgage holder is paid first; the second mortgage holder is paid from remaining proceeds.
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