Posted by LindaH
on April 1, 2009, 10:22 am, in reply to "Re: subordination"
67.142.130.24
In the above example, the equity line holder signs a "Subordination Agreement" agreeing that their lien position is behind the new mortgage...it's recorded at the time the new mortgage is recorded.
Hope this helps.
--Previous Message--
: A method by which one entity agrees to
: take a lower, more inferior position
: (a "back seat" if you
: will") to another ....
:
: Example: Borrower have first mortgage
: and equity line on
: property...refinance but do not want
: to close out the equity
: line....normally, when first mortgage
: is paid off and released the equity
: line would automatically move up into
: first lien position, new mortgage
: would come after, therefore second.
: New mortgage wants first lien position
: so equity line holder agrees to
: "subordinate" to the new
: mortgage - let new mortgage slip into
: first position and equity line holder
: remains in second.
:
:
: --Previous Message--
: Can I get an explanation "What is
: a
: subordination document?"
:
:
:
Message Thread:
« Back to thread