What is subordination in regards to real estate? Subordination is an agreement were a mortgage that is currently on a property agree to take a lesser position. Let say that you owned a house and had and existing mortgage on the house for about $5,000. You wanted to refinance the house for some reason yet you didn't want to pay this mortgage off for some reason. The new lender you are refinancing with would want to be in the first position. They would inquire of the escrow closing washington post home sales officer to request a subordination agreement, so the new lender would be in first position and the old lender would be in 2nd position. This is a normal transaction in the mortgage industry. There are several reasons the new lender would ask for a subordination new real estate listings agreement. 1. The existing mortgage is owned by a private citizen 2. The existing mortgage is a lot less dollar amount than the new first mortgage 3. The borrowers have an equity line of credit. These are just a few of the reasons I know that a lender might request a subordinate agreement, I am sure there might be others. I hope this has been of some use to you, good luck. "FIGHT ON"
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.