Bistro Z

Having a second mortgage that is not prepaid for the year or agreed upon term can be daunting if you are not good with managing your money. You will want to avoid any chance of missing payments of mortgage default as the penalties and interest does add up fast and can prove to be very expensive. There is some misinformation out there about the payment of your second mortgage only occurring after you have paid your first mortgage payment and that the second mortgage holder can wait for their payment.

This is far from the truth and result in you going into foreclosure if you do not address the default. You are required to make both your first mortgage and second loan payments on time as agreed to when you signed your mortgage contract. If you default on either mortgage payment, the lender can commence action to recover funds owed.

Usually this is when the third payment has been missed, but in other instances a second missed mortgage payment can result in a lender taking action and having their legal department intervening.