A second mortgage is security for a loan on property that stands behind a first mortgage. When a first mortgage balance is less than the total value of the property and there are no other loans or liens against the property, the difference between the first mortgage balance and the value of the property is equity. The property owner or mortgagee can sometimes borrow against all or part of that equity with a second mortgage as collateral. This gives the property owner use of the equity in the form of cash. If the property goes into default or foreclosure, the first mortgage is first in line to collect from any sale of the property. The second mortgage holder is in line behind the first. Because of this and based on the value of the property and the loan amounts, a second mortgage can cost more in interest than a first because of the increased risk to the mortgagor. Depending on local law, defaulting on a second mortgage can result in as serious consequences as defaulting on a first mortgage.