What is a 2nd Mortgage ??? Would somebody tell me ???

Hi every body … Are you doin’ great?? While in my sleep last night, I got a brain-

wave. I suddenly had this GREAT idea that I would start writing on all topics that is related to finance, and probably, within a year or two, would be able to cover up all that is there with Finance under the sun … Not exited with the idea ??? Honestly, even I am not. This would mean a load of reading, research, and a lot of time … But I thought, lets give it a shot and see how far this goes (Don’t blame me if I let it go in between !!! ).

You have any Idea what a 2^nd mortgage means?? Well, for those who don’t, 2^nd Mortgage refers to a secured loan that is subordinate to another loan against the same property. Oh yes, I would elaborate on that. If you already have a mortgage loan against a property, you may apply to another bank, and get a 2^nd loan against the same property, besides the fact that you already have a loan that is current. This is also know as Subordinate loan, because if one fine morning if you find that you have run out of money, and don’t have enough to pay back, then the 1^st loan would be paid back first, and then the 2^nd one. This is the reason why this kind of a deal is not a very good option for the money-lenders, and even if they do, the interest rate is usually very high.

The term of repayment may vary from a minimum of 1 year to a maximum of 30 years, depending on the structure of the loan. But beware; a 2^nd mortgage may act as a catalyst for a foreclosure by the lender. What usually happens is that, the 2^nd lien purchases the 1^st mortgage, and then decides to foreclose. At the end of the day, if the homeowner is not able to pay back, he loses the property.