A mortgage placed upon property which already has another mortgage existing upon it; for instance, a certain piece of real estate supposed to be worth $10,000 has already existing upon it a mortgage for $5,000; the owner wishes to borrow $2,000 more, and finds some one who is willing to accept a "second mortgage," upon the same, for that amount, making the total mortgage indebtedness against the property $7,000. Suppose the owner of the property is unable to pay the interest, when due, on the " second mortgage;" in order for the holder of this mortgage to protect himself, he must foreclose the property under his own mortgage and pay the holder of the first mortgage his due.

1 Note the spelling of this word.

In taking a "second mortgage" one should have reason to believe that the property will, at any time during the life of his mortgage, bring at forced sale a price sufficient to pay off both mortgages, because the first mortgage must be satisfied in full before the "second mortgage" holder receives anything.