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 Michigan Subordination Agreement of Deed of Trust is a legal document used to change the priority of a mortgage lien on a property. This agreement alters the order in which different liens or debts are paid off in case of default or foreclosure. In Michigan, there are two main types of Subordination Agreements of Deed of Trust: a First Lien Subordination Agreement and a Second Lien Subordination Agreement. 1. First Lien Subordination Agreement: This agreement is relevant when the property owner wants to obtain a new loan, such as a second mortgage, while the original mortgage (first lien) is still in place. By signing this agreement, the lender of the first mortgage agrees to subordinate their lien position to the new loan, allowing the new loan to become the primary lien on the property. This is usually done to access additional funds or secure lower interest rates. 2. Second Lien Subordination Agreement: In this case, the property owner already has an existing first mortgage lien on the property and wants to obtain a second mortgage or another type of loan. The second lien holder, typically a subordinate lender, consents to allow their lien to be subordinate to the first mortgage lien. This means that in the event of foreclosure, the first mortgage would be paid off before the second mortgage. Keywords: Michigan, Subordination Agreement, Deed of Trust, mortgage lien, priority, default, foreclosure, First Lien Subordination Agreement, Second Lien Subordination Agreement, first mortgage, second mortgage, subordinate lender, lien position, loan.A Michigan Subordination Agreement of Deed of Trust is a legal document used to change the priority of a mortgage lien on a property. This agreement alters the order in which different liens or debts are paid off in case of default or foreclosure. In Michigan, there are two main types of Subordination Agreements of Deed of Trust: a First Lien Subordination Agreement and a Second Lien Subordination Agreement. 1. First Lien Subordination Agreement: This agreement is relevant when the property owner wants to obtain a new loan, such as a second mortgage, while the original mortgage (first lien) is still in place. By signing this agreement, the lender of the first mortgage agrees to subordinate their lien position to the new loan, allowing the new loan to become the primary lien on the property. This is usually done to access additional funds or secure lower interest rates. 2. Second Lien Subordination Agreement: In this case, the property owner already has an existing first mortgage lien on the property and wants to obtain a second mortgage or another type of loan. The second lien holder, typically a subordinate lender, consents to allow their lien to be subordinate to the first mortgage lien. This means that in the event of foreclosure, the first mortgage would be paid off before the second mortgage. Keywords: Michigan, Subordination Agreement, Deed of Trust, mortgage lien, priority, default, foreclosure, First Lien Subordination Agreement, Second Lien Subordination Agreement, first mortgage, second mortgage, subordinate lender, lien position, loan.
