Supplemental Loan = 2nd charge?

Of course, many had terribly overvalued securities which would result in a loss not matter what. I myself, being inexperienced and overconfident, made stupid decisions to invest in some of them, such as the garden sheds. That is on me. However, how can one justify FS putting up a supplemental development loan stating that the property is near-completed and just requires final touches and then, when the 6-month period lapses (awfully long for final touches), sitting idly or "being in discussions with the borrower" for another year or two before initiating any recovery action? And then, when they finally take action, it turns out that the property is nowhere near completion and, to make things worse, the interest on the first charge has already eaten up all the headroom in the LTV. Lazy for delaying taking action, gullible for not checking on the status of the property, altogether incompetent.