Arkansas Subordination of Lien (Deed of Trust/Mortgage)

• Category: Oil Gas and Minerals - Subordination
• State: Multi-State
• Control #: US-OG-1211
• Format: Word; Rich Text

Description

This form is a subordination of lien for deed of trust or mortgage. Arkansas Subordination of Lien, also known as Deed of Trust or Mortgage Subordination, refers to a legal process in which a priority of liens is rearranged. This arrangement allows one creditor to gain priority over another creditor in terms of repayment in case of bankruptcy or foreclosure. Subordination agreements are commonly used when a property owner seeks to refinance their mortgage or obtain a second mortgage. The key purpose of Arkansas Subordination of Lien is to protect the interests of lenders and borrowers in specific situations. There are two main types of Arkansas Subordination of Lien — voluntary subordination and involuntary subordination. 1. Voluntary Subordination: This type of subordination occurs when a borrower willingly agrees to subordinate their lien to a newer lien or mortgage. It often happens during the refinancing of a first mortgage or when obtaining a home equity loan or second mortgage. The borrower willingly agrees to place the new lien in a higher priority position than their existing lien. By doing so, they allow the new lender to have a higher claim priority in case of foreclosure. 2. Involuntary Subordination: Involuntary subordination happens when the priority of a lien is rearranged due to legal or statutory requirements. It typically occurs in situations where a property owner doesn't voluntarily agree to subordination, but it is mandated by law or court order. One common example is when a tax lien takes precedence over an existing mortgage lien due to non-payment of property taxes. Keywords: Arkansas subordination of lien, deed of trust, mortgage subordination, voluntary subordination, involuntary subordination, refinancing, priority of liens, creditor, foreclosure, bankruptcy, property owner, second mortgage, claim priority, home equity loan, legal process, court order, tax lien, property taxes.

Arkansas Subordination of Lien, also known as Deed of Trust or Mortgage Subordination, refers to a legal process in which a priority of liens is rearranged. This arrangement allows one creditor to gain priority over another creditor in terms of repayment in case of bankruptcy or foreclosure. Subordination agreements are commonly used when a property owner seeks to refinance their mortgage or obtain a second mortgage. The key purpose of Arkansas Subordination of Lien is to protect the interests of lenders and borrowers in specific situations. There are two main types of Arkansas Subordination of Lien — voluntary subordination and involuntary subordination. 1. Voluntary Subordination: This type of subordination occurs when a borrower willingly agrees to subordinate their lien to a newer lien or mortgage. It often happens during the refinancing of a first mortgage or when obtaining a home equity loan or second mortgage. The borrower willingly agrees to place the new lien in a higher priority position than their existing lien. By doing so, they allow the new lender to have a higher claim priority in case of foreclosure. 2. Involuntary Subordination: Involuntary subordination happens when the priority of a lien is rearranged due to legal or statutory requirements. It typically occurs in situations where a property owner doesn't voluntarily agree to subordination, but it is mandated by law or court order. One common example is when a tax lien takes precedence over an existing mortgage lien due to non-payment of property taxes. Keywords: Arkansas subordination of lien, deed of trust, mortgage subordination, voluntary subordination, involuntary subordination, refinancing, priority of liens, creditor, foreclosure, bankruptcy, property owner, second mortgage, claim priority, home equity loan, legal process, court order, tax lien, property taxes.