Where a mortgagor obtains a "second mortgage", the mortgagor has mortgaged

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When a mortgagor obtains a second mortgage, they are essentially using the equity of redemption as collateral. The equity of redemption is the right of the mortgagor to reclaim their property upon full repayment of the first mortgage. This does not involve mortgaging the legal title, hypothecation, the first mortgage itself, or the right to avoid default directly, but rather the value or interest the mortgagor has in the property after the first mortgage is considered.

Where a Mortgagor Obtains a "Second Mortgage", the Mortgagor Has