What happens to a second mortgage once a first mortgage is paid off?
According to this website...
"There's no legal order in which either loan must be paid off"
Once the first is paid off, is the second mortgage then upgraded to a "first mortgage" (i.e. no other mortgage can be resolved before it in a foreclosure)?
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"Second Mortgage" is not a legal definition - it just describes a mortgage or loan that is subordinate to another loan, meaning that in the case of foreclosure the other loan is satisfied first.
If the "first mortgage" is paid off, then there is no loan to be subordinate to, so the "second" mortgage then is first in line in the event of foreclosure. So for all intents and purposes, yes, the loan would become "first" but it should not change the terms of the loan.
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