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Subordination Agreement SEC Gov  Form

Subordination Agreement SEC Gov Form

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a subordination agreement is a legal document used to make the claim of one party Junior to a claim in favor of another it is generally used to Grant first lean status to a lion holder who would otherwise be secondary to another party with the approval of the party that would otherwise have first Le in typically a subordination arises when there are two existing mortgages a first mortgage and a second mortgage and the mortgager intends to refinance the first mortgage if the holder of the second mortgage does not subordinate the leing of its mortgage to the new mortgage the new lender will not refinance the first mortgage however the second mortgage holder does not want to release its mortgage and refile due to additional costs and priority problems so it will subordinate its Leon to the lean of the replacement mortgage external links sample subordination agreement overview of debt subordination agreements

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