Existing 2nd lien Mortgage & Note sale concerns

[Michael Morrongiello]

Situation:
Husband and wife bought a NEW home in 2017 for $380K and put down $90K, then obtaining a $290K CONVENTIONAL 30 Year Fixed interest rate 1st lien @ 4.0%. The payments on this 1st lien are $1,384.50 P & I only. The Husband is a realtor and wife works on occasion. This is their primary residence and the value increased quite a bit since 2017 to where conservative value of the home today is in the $625K to $650K value range. The real estate markets slowed in 2024 and the husband reached out to an investor associate to BORROW some funds during these slow times. The investor associate who KNEW them and had done past business with them agreed to LEND them $27K as a 2nd lien mortgage note against their home with I/O terms and a balloon due in 12 months. The closing was done thru an attorney. NO income qualifying was done between the parties as the knew one another and had done past business with one another.

PROBLEM; 
When the 12 months maturity date came due in 2025 the borrowers COULD NOT pay off the $27K 2nd lien So the Investor lender agreed to FULLY AMORTIZE out the $27K over a 60 month (5 year) period of time with monthly installments. They have slowed paid some of these payments and then caught them up. The 2nd lien balance is now $24, 000 +/- and The 2nd lien Note holder wants to move on from this loan and not have to deal with them any longer. With its almost 8 yrs of payments paid on it thus far; The approximate superior 1st lien balance outstanding is $243,000

QUESTION: 
Given that that this 2nd lien loan was closed thru an attorney and the parties knew one another, and it appears there is SUFFICIENT 
equity cushion between what they owe on their 1st lien ($243K) and their 2nd lien ($24K) Vs the $625K to $650K  Now  Property Value.
WOULD YOU BUY THIS 2nd lien ? 

Would you have any concerns that this might be construed as a consumer loan since its an owner occupied residence and was so when the investor LOANED them the 2nd lien funds?

Would then cause you to pass on the purchase even at a DECENT discount of THIS 2nd lien Mortgage & Note?

Thoughts? 

Michael M.