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 Colorado Subordination Agreement of Deed of Trust is a legal document that outlines the priority of multiple liens or mortgages against a property in Colorado. This agreement is commonly used when a property owner wants to refinance their existing mortgage or obtain a new loan. By signing this agreement, the existing lien holder agrees to subordinate their lien position to the new lender, allowing the new lender to have a higher priority lien on the property. The agreement typically includes the names and addresses of all parties involved, such as the property owner, the existing lien holder, and the new lender. It also specifies the existing deed of trust that will be subordinated, along with its recording information. The purpose of a Subordination Agreement of Deed of Trust is to establish the priority of liens on a property. In Colorado, this agreement is crucial in situations where a property owner wants to secure a new loan without paying off the existing mortgage, or when they plan to refinance an existing mortgage. By entering into this agreement, the new lender is assured that their lien will take precedence over the existing lien, providing them with a higher level of security. In Colorado, there are different types of Subordination Agreements of Deed of Trust, depending on the specific circumstances: 1. First Lien Subordination Agreement: This type of agreement involves the subordination of a first lien, which is the primary mortgage on the property. It is used when the property owner wants to obtain a new loan or refinance an existing loan, but the existing first lien must be subordinated to the new lender's lien. 2. Second Lien Subordination Agreement: This agreement involves the subordination of a second lien, which is a subordinate mortgage or lien on the property. It is used when the property owner has a primary mortgage and an additional loan secured by a second deed of trust. The second lien holder agrees to subordinate their lien to a new lender or a refinancing lender. 3. Intercreditor Subordination Agreement: This type of agreement is used when there are multiple lenders or lien holders involved, each with varying lien priorities. It establishes the order of priority among the different lien holders, ensuring a clear understanding of payment priorities in case of default or foreclosure. In conclusion, a Colorado Subordination Agreement of Deed of Trust is a legal document defining the priority of liens on a property. It allows the property owner to obtain a new loan or refinance an existing loan by rearranging the lien positions. By entering into this agreement, the existing lien holder agrees to subordinate their lien to the new lender, ensuring the new lender's lien is given a higher priority.
