This agreement allows one lien holder to subordinate its deed of trust to the lien of another lien holder. For valuable consideration, a particular deed of trust will at all times be prior and superior to the subordinate lien.
A California Subordination Agreement of Deed of Trust is a legal document that determines the priority of multiple mortgage or lien holders on a property. This agreement is commonly used when the property owner seeks to refinance their existing loan or take out another mortgage, while still having an outstanding mortgage or lien on the property. Keywords: California, Subordination Agreement, Deed of Trust, priority, mortgage, lien holders, refinance, existing loan, outstanding mortgage, property. There are different types of California Subordination Agreements of Deed of Trust, which include: 1. First Lien Subordination Agreement: This type of agreement is applicable when the property owner wishes to take out a second mortgage or refinance while maintaining the first mortgage. The agreement ensures that the first mortgage holder's lien remains in the first position, maintaining its priority over any other mortgage or lien that may be added. 2. Second Lien Subordination Agreement: In contrast to the first lien subordination agreement, this type of agreement is used when the property owner wants to take out a first mortgage while having an existing subordinate (second) mortgage. The agreement ensures that the new first mortgage takes priority over the existing subordinate mortgage. 3. Intercreditor Agreement: This agreement is used when there are multiple lenders involved in financing a property. It establishes the rights and obligations between each lender, ensuring that they understand the priority of their respective liens when collecting on the property. 4. Deed of Trust Subordination Agreement: This agreement is specifically used when there is a change in the priority of multiple deeds of trust on a property. It outlines the new priority order and is commonly used during refinancing or modifications of existing mortgages. In all types of subordination agreements, it is crucial to outline the specific lien or mortgage being subordinated, the priority order of each lien or mortgage, and the consent of all parties involved. These agreements are legally binding and protect the rights of both borrowers and lenders in California.A California Subordination Agreement of Deed of Trust is a legal document that determines the priority of multiple mortgage or lien holders on a property. This agreement is commonly used when the property owner seeks to refinance their existing loan or take out another mortgage, while still having an outstanding mortgage or lien on the property. Keywords: California, Subordination Agreement, Deed of Trust, priority, mortgage, lien holders, refinance, existing loan, outstanding mortgage, property. There are different types of California Subordination Agreements of Deed of Trust, which include: 1. First Lien Subordination Agreement: This type of agreement is applicable when the property owner wishes to take out a second mortgage or refinance while maintaining the first mortgage. The agreement ensures that the first mortgage holder's lien remains in the first position, maintaining its priority over any other mortgage or lien that may be added. 2. Second Lien Subordination Agreement: In contrast to the first lien subordination agreement, this type of agreement is used when the property owner wants to take out a first mortgage while having an existing subordinate (second) mortgage. The agreement ensures that the new first mortgage takes priority over the existing subordinate mortgage. 3. Intercreditor Agreement: This agreement is used when there are multiple lenders involved in financing a property. It establishes the rights and obligations between each lender, ensuring that they understand the priority of their respective liens when collecting on the property. 4. Deed of Trust Subordination Agreement: This agreement is specifically used when there is a change in the priority of multiple deeds of trust on a property. It outlines the new priority order and is commonly used during refinancing or modifications of existing mortgages. In all types of subordination agreements, it is crucial to outline the specific lien or mortgage being subordinated, the priority order of each lien or mortgage, and the consent of all parties involved. These agreements are legally binding and protect the rights of both borrowers and lenders in California.
