Posted by dickb/wi on April 2, 2009, 8:23 am, in reply to "Re: subordination...sorry...didn't complete the thought"
68.117.125.26
broker i give you an A++...........
--Previous Message--
: 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 secon
:
:
:
:
:
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