Can I have more than one mortgage loan?
You already have a mortgage on your home but you need more liquidity, so your reasonable question is if you can have more than one mortgage loan. Of course, only you have to take into account some details about a second or third mortgage.
Several mortgages can be constituted on a house, since the mortgage represents a guarantee right on an obligation and as many mortgages on the property can be constituted as obligations are acquired.
What happens when you have more than one mortgage loan?
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In practice, when you have a second or third mortgage, you must attend to the following:
- Second mortgages or those that are subsequently constituted will have a lower rank than the first mortgage.
- The first creditor shall have preferential right over the second creditor and this over the third creditor and so on.
- If there is insolvency in the case of a house with two mortgages once the property is executed the value obtained in the auction will be used to pay the debt with the first creditor and in case there is a remainder it will be paid to the second creditor.
In accordance with these provisions, you can logically have more than one mortgage loan if the entity to whom you make the request observes that even if there is a first mortgage, there is a guarantee of resolving the debt in the event of an auction.
What if you can only pay a single mortgage?
The non-payment of one of the credits can lead to the execution of the mortgage to guarantee the payment, but this does not give the right to execute the mortgage or the mortgages on which there is no default.
In short, having more than one mortgage goes through the consideration of the ability to pay. This will avoid falling into default with any of the mortgages and having to reach legal agreements.