HELP! | Subordinate Financing: |
Subordinate
Financing: |
Lien
priority in real estate loans is determined by the date of recording.
The first loan to be recorded is the first loan to be paid off in most
cases, although sometimes the parties to a loan may desire that a later
recorded loan be paid off before an earlier recorded loan. If this
is the case, the first recorded loan must have a subordination clause or
the earlier lender can sign a subordination agreement. A second loan
using the same property for collateral or security to pay back the loan
is called "subordinate financing".
If you are applying for a
first and second mortgage on your property, or refinancing your first mortgage
and applying for an original second mortgage at the same time, enter the
amount of the second loan in the field provided.
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