A second or third mortgagee is not affected if the first mortgagee obtains an order of foreclosure.

Question

Quizplus · Accepted Answer

A second or third mortgagee can be affected if the first mortgagee obtains an order of foreclosure because the first mortgagee has priority, and if the property is sold during foreclosure proceedings, the first mortgage will be paid off first before any remaining funds go towards the second or third mortgage. This means that the second or third mortgagee may not receive the full amount owed to them or could even lose their collateral if the property is sold for less than the amount owed on the first mortgage.

A Second or Third Mortgagee Is Not Affected If the First