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 New Hampshire Subordination Agreement of Deed of Trust is a legal document that clarifies the hierarchy of liens on a property when multiple mortgages or loans have been taken out against it. This agreement serves to establish the priority of these liens and determines the order in which they will be paid off if the property is sold or foreclosed upon. Keywords: New Hampshire, Subordination Agreement, Deed of Trust, hierarchy of liens, mortgages, loans, priority, property, sold, foreclosed. There are a few different types of Subordination Agreement of Deed of Trust in New Hampshire, including: 1. First lien holder subordination agreement: This type of agreement is used when a property owner wants to refinance their mortgage or take out a new loan while still keeping the existing mortgage in place. The first lien holder agrees to subordinate their lien to the new loan, essentially allowing the new lender to take priority in case of default or foreclosure. 2. Second lien holder subordination agreement: This form of agreement occurs when there is an existing first mortgage or lien on a property, and the property owner wants to take out a second mortgage or loan against the same property. The second lien holder must obtain the consent of the first lien holder to subordinate their lien to the new loan. 3. Intercreditor subordination agreement: In situations where there are multiple lenders involved in a property's financing, such as a combination of a first mortgage lender, a second mortgage lender, and other creditors, an intercreditor subordination agreement is used. This agreement clarifies the priority of liens among the various lenders and helps ensure a fair distribution of proceeds in case of foreclosure. In conclusion, a New Hampshire Subordination Agreement of Deed of Trust is a crucial legal document that outlines the priority of liens on a property when multiple mortgages or loans are involved. By using this agreement, the hierarchy of liens can be established, ensuring a fair and orderly distribution of funds in the event of property sale or foreclosure.
