Subordination Clause

The provision in a mortgage deed that regulates the possible subordination of the mortgage to another mortgage lien. The subordination clause of first mortgage loans prohibits its subordination to other private obligation liens. Second mortgage loans normally allow subordination, with the case-by-case approval of the lender's underwriter. For more information, see the "Mortgage Deeds and Promissory Notes" article (in the "Real Estate In-Depth" section) and the "Second Mortgages" article (in the "Loan Programs" section).

Real Estate 101

Real Estate 101

This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.

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