A New Mexico Subordination of Lien, also known as a Deed of Trust/Mortgage, is a legal document that allows a property owner to subordinate their existing lien to another party's lien on the property. This means that the original lien holder agrees to give priority to the new lien holder in terms of repayment in the event of a foreclosure or sale of the property. The purpose of a Subordination of Lien is usually to facilitate a refinancing or a home equity loan, where the property owner desires to borrow additional funds against the property. By subordinating their existing lien, the property owner allows the new lender to have a higher priority lien position, giving them the ability to recoup their investment first in case of default. In New Mexico, there are different types of Subordination of Lien: 1. Mortgage Subordination: This type of subordination occurs when the property owner has an existing mortgage on the property and wants to obtain a new mortgage while keeping the original one intact. The original mortgage holder agrees to subordinate their lien to the new lender, allowing the new mortgagee to have priority in the event of default or sale. 2. Deed of Trust Subordination: New Mexico, like many other states, utilizes a deed of trust instead of a mortgage. A Deed of Trust Subordination occurs when the trust or (property owner) wishes to subordinate their existing lien to a new trustee. This allows the new lien holder or trustee to have priority over the original trustee. 3. Cross-collateralization Subordination: This type of subordination involves multiple properties serving as collateral for a loan. In New Mexico, if a property owner wants to borrow against one property while maintaining the existing liens on other properties, a cross-collateralization subordination is required. This allows the new lien holder to have priority over the specific property being used as collateral for the additional loan. It is important to note that a New Mexico Subordination of Lien requires the consent of the original lien holder. The agreement should be carefully drafted and reviewed by legal professionals to ensure all parties involved are protected. In summary, a New Mexico Subordination of Lien (Deed of Trust/Mortgage) is a legal arrangement that enables property owners to subordinate their existing liens to new ones. It can take different forms such as mortgage subordination, deed of trust subordination, or cross-collateralization subordination, depending on the specific circumstances and the desires of the property owner.