You are not in default on the second. You can continue to make your monthly payments according to the agreement, unless the agreement provides otherwise.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
Generally mortgages contain provisions that if the property is sold or foreclosed upon, the outstanding loan obligations secured by the mortgage become immediately due and payable. It is important to review the terms of your mortgage to see if it contains such a provision.