A
"secondary lien" refers to a loan or debt that is secured by collateral, like a house or a car, but is subordinate to another loan or debt. It means that if the borrower defaults and their collateral is sold, the proceeds will first be used to pay off the primary lien or debt, and only the remaining amount will be used to satisfy the
secondary lien. In a nutshell, it is a lower priority loan that gets paid after the primary loan is settled.
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