The answer to this question is TRUE.
It is true that many financial institutions hesitate to make loans on second or third mortgages. Second mortgages are riskier for lenders because they come with a higher interest rate than the first mortgages.
Additional information:
> Second mortgage is a security interest on a property which is subordinate to a more senior mortgage or loan.
>A third mortgage is a security interest on property subordinate to the first and second mortgages.
