Clients borrow money from a lender to finance their house; the rank of the mortgage is determined by the order of the date on which the homeowner borrowed the money – First mortgages are followed by second mortgages, then third mortgages, and so on as necessary. If the homeowner fails to repay the amount that was agreed upon, the loan falls into default.
A lender can take over the property in order to pay off the mortgage if all other legal options to return the payments to good standing have failed. That is lender can start a legal process under power of sale procedure.
Second Mortgages are one of the popular options for homeowners who may want to carry out renovations, consolidate unsecured debt or acquire funds for unexpected emergencies.