Suntrust Subordination Form

What is the Suntrust Subordination

The Suntrust subordination refers to a legal agreement where one party agrees to subordinate its claim to another party's claim. This is commonly used in real estate financing, particularly when dealing with home equity lines of credit (HELOCs). In this context, the Suntrust subordination allows a new lender to take a priority position over an existing loan, ensuring that the new loan is paid first in the event of a foreclosure. Understanding this concept is crucial for homeowners seeking to refinance or obtain additional financing against their property.

How to Obtain the Suntrust Subordination

To obtain a Suntrust subordination, borrowers typically need to submit a formal request to Suntrust Bank. This involves filling out a Suntrust subordination request form, which may require details about the existing loan, the new loan, and the property in question. It is important to provide accurate information to facilitate the processing of the request. Additionally, borrowers may need to include supporting documents, such as the original loan agreement and any relevant financial statements, to demonstrate their financial standing.

Steps to Complete the Suntrust Subordination

Completing the Suntrust subordination process involves several key steps:

• Gather necessary documentation, including your current loan details and any new loan offers.
• Fill out the Suntrust subordination request form accurately, ensuring all information is complete.
• Submit the request form along with any required supporting documents to Suntrust Bank.
• Await confirmation from Suntrust regarding the approval or any additional requirements.
• Once approved, review the subordination agreement before signing to ensure all terms are understood.

Legal Use of the Suntrust Subordination

The legal use of the Suntrust subordination is governed by various laws and regulations that ensure the agreement is valid and enforceable. The subordination agreement must comply with federal and state laws, including the requirements set forth by the Equal Credit Opportunity Act (ECOA) and the Truth in Lending Act (TILA). It is essential for borrowers to understand their rights and obligations under these laws to avoid potential legal issues in the future.

Required Documents

When requesting a Suntrust subordination, several documents are typically required to support the application. These may include:

• The original loan agreement for the existing mortgage.
• Details of the new loan, including a loan estimate or commitment letter.
• Proof of income and financial statements to demonstrate the ability to repay the new loan.
• Property appraisal or valuation report, if applicable.

Key Elements of the Suntrust Subordination

Understanding the key elements of the Suntrust subordination is vital for borrowers. These elements include:

• The priority of claims: The new lender's claim will take precedence over the existing loan.
• The terms of the subordination: Specific conditions under which the subordination is granted.
• The rights of the borrower: Borrowers must be aware of their rights and responsibilities under the agreement.
• Compliance with legal requirements: Ensuring the agreement adheres to applicable laws and regulations.