The subordination of the mortgage is a second mortgage that retains its position as a junior, while the first mortgage refinance debt obligations pronounced. If not for the subordination agreement, mortgage, second mortgage (or a mortgage or line of credit) would automatically first-tier position.
The property sold for $3,000,000 to foreclosure because the $ 4,000,000 was due on the first mortgage is not paid on the mortgage side.
The subordinated loan is required if you have two mortgages and wants to refinance the first. Without order, if you refinance the first and the second is automatically the first priority, and the first throw is a second priority automatically. (Set priorities after the date of signing and recording of loans.) But the lender keeps his writing so much be, requires that the lender to run a second loan agreement of subordination to the first priority need. The Agreement provides that to remain the lender of the second second to the first lender after an initial loan refinancing agrees.
To have a submission, the following may be submitted.
Written request to Subordinate from borrower (signed & dated)
Copy of Credit Application (1003)
Property Appraisal (complete with photos)
Preliminary Title Report (current)
Income Verification (paystubs/W-2′s)*
Lender’s Approval Letter or 1008 (must include new financing terms)
Copy of credit report (current)
Prepared Subordination Agreement. For an additional charge of $25.00, American First can complete the subordination on the lender’s behalf
$350.00 check payable to “American First Credit Union”
Return overnight envelope, including a completed return air bill slip
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