If you are under financial constraints and your home is already mortgaged, the best way to keep your home from getting auctioned publicly or repossessed is to subject your property to a second mortgage.
Yes, this is allowed as long as payment of the first mortgage is done within the grace period given to you or before any action to enforce payment has been taken against you.
But expect that in the second mortgage, 2nd home mortgage rate is usually higher.
Not that the second mortgagor wants to exploit the urgency of the situation, but this is for the purpose of guaranteeing payment.
Having mortgaged the property the second time implies that you do not have sufficient assets to pay the first mortgage for the meantime.
And with the consequent benefits that the second mortgage will get you, it is only right that some sort of compensation be given to the second mortgagor for assuming the risk of your insolvency.
Do not worry not all 2nd home mortgage rate is blown out of proportion.
There are still some who are already contented in just recovering the risks that they have assumed.
Now that the economy is gradually recovering, more and more lenders are starting to open their doors for those people are would like to mortgage their property even for the second time.
This is the time when negotiations for a lower rate are most welcome since nobody really wants to sell a real property to a place where people are still recovering from economic recession.