Second Mortgage Status

I will not advise you whether or not you should continue to pay the second, but you will still be responsible for the amounts owed on the second mortgage even if the first forecloses on the property. If there is enough funds after sale to pay off both mortgages, the second will be satisfied as well. However, if there is not sufficient funds to pay off the second mortgage, the second mortgage holder will then becomes an unsecured creditor and may obtain a money judgment against you. That judgment can be attached to other real property, bank accounts, and your wages can be garnished. I always suggest consulting a local attorney, as this should not be construed as sufficient legal advice. Good Luck

With both your first and second mortgages, you promised to repay money that you had borrowed. Signing the mortgages only allowed the mortgagee to force the sale of your property if you default on the debt. If the house is sold for less money than you borrowed, you are still liable for the difference (called a "deficiency"). The two lenders have five years from the end of the foreclosure to sue you to collect the deficiency. If you need further information about your situation, you should contact an experienced real estate lawyer in your area. Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.