Question: What Does Subordinate A Lot Mean?

What does subordinate mean in real estate?

subordination clauseTo adjust the priority of a loan in the event of default, a lender may demand a subordination clause, without which loans take chronological precedence.

A subordination clause effectively makes the current claim in the agreement senior to any other agreements that come along after the original agreement..

What is subordinate behavior?

A subordinate is someone who works for someone else. As a verb, to subordinate means to place or rank one thing below another. When you’re doing a group project, sometimes you have to subordinate your ideas to the desires of the larger group.

Should I sign a subordination agreement?

The existing second loan moves up to become the first loan. The lender of the first mortgage refinancing will now require that a subordination agreement be signed by the second mortgage lender to reposition it in top priority for debt repayment.

What is the purpose of a subordination agreement?

Despite its technical-sounding name, the subordination agreement has one simple purpose. It assigns your new mortgage to first lien position, making it possible to refinance with a home equity loan or line of credit. Signing your agreement is a positive step forward in your refinancing journey.

How do I subordinate a lien?

Refinancing Mortgages and Subordination Agreements Sometimes, the priority of liens is controlled by a special agreement called a “subordination agreement.” In a subordination agreement, a prior lienholder agrees that its lien will be subordinate (junior) to a subsequently recorded lien.

What is subordination sentences?

Coordination and Subordination. Coordination and subordination are two ways of combining sentences. Coordination means combining two sentences or ideas that are of equal value. Subordination means combining two sentences or ideas in a way that makes one more important than the other.

Who benefits from a subordination clause in a deed of trust?

The borrower (trustor) benefits the most from a subordination clause since this makes it easier to obtain an additional loan on their property. For example, the buyer of vacant land can obtain a construction loan more easily if the loan against the land will be subordinated to the construction loan.

What is subordination fee?

A subordination agreement is an instrument that allows a first lien or interest to be paid off and allows another first mortgage company to come in and be the first priority lien holder. It is very common for the borrower to pay subordination fees.

What does it mean to subordinate a mortgage loan?

Subordination clauses in mortgages refer to the portion of your agreement with the mortgage company that says their lien takes precedence over any other liens you may have on your property. … The primary lien on a house is usually a mortgage. However, it’s also possible to have other liens.

How do I get a subordination agreement?

If you need to get a subordination agreement from a second mortgage lender, contact that lender. Explain that you’re refinancing your first mortgage and that the new lender wants a subordination agreement.

What does subordinate financing mean?

Subordinate financing is debt financing that is ranked behind that held by secured lenders in terms of the order in which the debt is repaid. “Subordinate” financing implies that the debt ranks behind the first secured lender, and means that the secured lenders will be paid back before subordinate debt holders.

What is a Certificate of Subordination of Federal Tax Lien?

The IRS may issue a certificate of subordination to a federal tax lien. This certificate of subordination allows a named creditor to move its junior creditor position ahead of the government’s position for the property named in the certificate. … The lien remains in place.

What are the 3 subordinate clauses?

There are three types of subordinate clauses: adjective, adverb, and noun. When a subordinate clause modifies a noun or pronoun it is called an adjective clause.

What is the meaning of subordinate?

1 : placed in or occupying a lower class, rank, or position : inferior a subordinate officer. 2 : submissive to or controlled by authority. 3a : of, relating to, or constituting a clause that functions as a noun, adjective, or adverb.

How long does a subordination agreement take?

two to three weeksResubordination is easier now “But as property values are going up and the demand for refinance isn’t as much, it seems that the subordination process has gotten a little easier.” Typically, it takes two to three weeks to get the resubordination paperwork through, and it is likely to set you back $200 to $300.

What is an example of subordination?

Subordination uses conjunctions (for example: although, because, since, when, which, who, if, whereas) to connect one dependent clause to an independent clause, creating a COMPLEX sentence.

How do you use subordinate in a sentence?

Subordinate sentence examplesHe put on the air of a subordinate who obeys without reasoning. … The authorship of the epistles is in many cases a matter of subordinate importance; at least for Protestants or for those surrendering Bible infallibility, which Rome can hardly do. … I consider myself fortunate to have such a subordinate by me.More items…

What is a subordinate lien?

Subordinate Liens Being “subordinate” means they can be paid only after more senior liens are released. In other words, if the mortgage lender has the primary lien, that lender must be paid in full before any subordinate liens are paid.