first mortgage & second mortgage on same property

If I sell my property and I hold a second mortgage, and the buyer takes a first mortgage on same property, can the buyer increase the amount of the 1st mortgage withour informing me, the holder of the second mortgage?

1 Answer

As long as you have recorded the second mortgage with the county as a lien against the property, the answer is no, buyer can't refinance without your consent. That formal consent is called a subordination. If you failed to record the 2nd mortgage (if you haven't done so already, need to do ASAP!), you have no recourse against a refinance that has already occurred.