Finance
A Vermont property owner has a first mortgage of $180,000 and takes out a home equity line of credit (HELOC) of $50,000. The HELOC is a:
AFirst lien on the property
BJunior lien on the property✓ Correct
CPersonal loan with no lien on the property
DReplacement for the first mortgage
Explanation
A HELOC taken after an existing first mortgage is a junior lien (second mortgage position). In the event of foreclosure, the first mortgage must be satisfied before the HELOC lender receives any proceeds.
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