There is a difference between a modification of an existing mortgage which does not impact on the mortgages priority of recording with respect to subordinant encumbrances and a refi with an entirely new mortgage and payoff, release of the pre-existing mortgage and recording of the new refinanced mortgage.

Recorded encumbrances create property rights. I wonder if the statute in question could be construed to be a violation of constitutional Due Process guarantees. Although Due process is still an evolving concept at least two areas are firmly established...the rightsof the property owner to notice and being heard on the issue.

Has the statute by passed the subordinant mortgagee's right to notice and a hearing of their position in this matter?