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A mortgage loan that may allow future advances as the value of the property increases, up to a certain percentage of loan-to-value.The legal problem with this arrangement occurs when loan 1 is an open-end mortgage, lender 2 loans money to the borrower and takes a second mortgage, and then lender 1 advances additional money under its open-end mortgage. If there is a foreclosure or bankruptcy,and not enough money to pay everyone,in what order are the loans paid? The answer depends on the borrower's state, the precise language of the open-end mortgage, and/or whether lender 2 gave notice to lender 1 of the new loan. See future advances mortgage. Do not confuse with an open mortgage.