what happens when a person defaults on a second mortgage (borrowed from another person) while the repayments for the first mortgage are made on time. does the borrower of the 2nd mortgage have the right to sell the property to get their funds back
And how would someone get their money back after default on a loan with caevet, would they need to sue
and how many days of non repayment is considered default and what usually happens with these type of loans?
The rights of recovery for a 2nd mortagee are the same as the prime mortgage holder.
In the event of default the 2nd mortgagee can take appropriate steps to recoup his money by making application to the Court for possession.
In reality you would normally need to notify the 1st mortgage as they have prior claim on any sale proceeds. You may also find that they wish to pay you out and take over control of the sale.
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Richard Taylor
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