Legal Question in Real Estate Law in Utah

Re: Second Mortgage Fraud

You would have to first return all monies. As soon as all monies are repaid, then the mortgage is released. You cannot, of course, "cancel" the second mortgage without repaying the money. If the mortgage lender, or whomever currently owns the loan, should learn that there was misrepresentation by either you or the original lender, they would have the power to call the note immediately due and payable. If you could not then repay the loan you would probably wind up in a foreclosure. Unless you can pay off the second, your best option is to make the payments and not make an issue of whether the original lender changed your application.

Note that at the closing you should have been given the opportunity to verify that all information was correct. You probably signed some documents which stated that you had confirmed that all information was correct. By signing those documents, you were then bound to be an 'accomplice' of any misstatements. So you may have become unwittingly liable by signing off on the loan at closing. Your best option is to make sure the loan is paid.