Just spoke with two searchers going through the SBA 7a bank process... is it common knowledge that the PG related to the equity in your home is a preemptive lien on your home?

It was my understanding that if you became a default risk with an SBA 7a, then they'd move towards a lien on your home. Surprised to learn in the underwriting process they mandate a lien on your home if it's a portion of your net worth.