Jacinta owns a piece of land called Blackacre.She created a mortgage over Blackacre in favour of Simon.She then created a second mortgage in favour of Paolo.Simon has foreclosed on the property.As a result, he was able to extinguish Jacinta's title because she did not repay her loan to him.However, Simon's foreclosure cannot extinguish Paolo's second mortgage interest in Blackacre because Paolo did not receive any benefit from Simon.

Question

Quizplus · Accepted Answer

Simon's foreclosure on the property can extinguish Paolo's second mortgage interest if the foreclosure process was properly executed and Paolo was properly notified of the foreclosure proceedings, as the first mortgage has priority over subsequent mortgages unless specific laws or agreements dictate otherwise.

Jacinta Owns a Piece of Land Called Blackacre