Second Lien Holders Feel The Pinch As "HELOC Hell" Begins To Spread

Financial Week reports:

• As the housing market continues to deteriorate, problems for lenders and insurers are spreading from first-lien mortgages to home-equity lending. Those who engage in this form of lending have a weaker claim on collateral, and so face a greater risk of loss. As a result, this development promises to throw cold water on claims that the credit crisis is abating.

For more, see Now lenders are facing HELOC hell (Second-lien creditors have a greater risk of loss, so credit crisis may not be abating after all).