Unusual clauses you should have in YOUR mortgages by way of an addendum.

We recommend certain extra clauses to give you extra protection.

For a full list, view our suggested addendum that should be signed and recorded along with the mortgage. NOTE. The laws in every state differ. We are not attorneys, we cannot give you legal advice or draft legal documents for you. However show this addendum to your expert real estate attorney, or draw up a suitable document yourself if you're SURE you know what you're doing.

View our addendum.

You will note the special clauses that protect you if you have given a second mortgage. These include:

The right to foreclose your second mortgage even if the borrower is current with your payments but the first mortgage is in default.  It is possible for a borrower to keep paying your second mortgage, because you bug them if they're one day late and the bank who hold the first doesn't. By not paying the first mortgage, the borrower is eroding the equity that protects your second mortgage. And guarantees an eventual foreclosure where you could be wiped out.

The right to contact the first mortgage holder to see if they're current. We recommend you do this EVERY month. Yes I know, we have a clause requiring them to send you a copy of the front and back of the check. Guess what, if they aren't paying on the first mortgage they won't send this to you. And some people are so annoying, they won't send you a check copy even if they HAVE paid the first.

Also:

The right to demand payments by money order or cashiers check if their check bounces. 

The right to access the property for inspection purposes or to have an appraisal performed with reasonable notice.

and so on.

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