Jacinta Owns a Piece of Land Called Blackacre

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, since there is no privity of contract between Simon and Paolo, Simon's foreclosure cannot extinguish Paolo's interest in Blackacre.