Ohio Subordination of Lien (Deed of Trust/Mortgage) is a legal agreement that allows a property owner to rearrange the priority of multiple liens on their property. This process is commonly used during refinancing or when obtaining additional financing against a property that already has an existing mortgage or deed of trust. In Ohio, there are three main types of subordination of lien: First lien subordination, second lien subordination, and subsequent lien subordination. Each type serves a specific purpose and helps property owners navigate complex financial situations while protecting the interests of all parties involved. First lien subordination typically occurs when a property owner wants to refinance their property but has an existing first mortgage or deed of trust. By obtaining first lien subordination, the property owner can secure a new loan without disturbing the priority of the initial lender. This means that the original lender retains their first lien position, while the new lender assumes a secondary lien position. Second lien subordination, on the other hand, is used when a property owner wants to take out a second mortgage or deed of trust while keeping the first lien intact. This allows the property owner to access additional funds while the existing lender maintains their first lien position. Second lien subordination agreements are commonly used for home equity lines of credit (Helots) or when financing home improvements. Lastly, subsequent lien subordination comes into play when the property owner wants to obtain a third or subsequent mortgage or deed of trust while ensuring the proper order of priority. In this case, the existing lenders agree to subordinate their liens to the new lender's position, accommodating the property owner's needs while maintaining the integrity of the original lien structure. It is important to understand that Ohio Subordination of Lien (Deed of Trust/Mortgage) agreements require the consent of all involved parties, including the property owner, existing lenders, and the new lender. The subordination agreement outlines the terms and conditions under which the subordination will take place, including the specific priority of each lien and any additional provisions or safeguards. In conclusion, Ohio Subordination of Lien (Deed of Trust/Mortgage) is a legal process that allows property owners to adjust the priority of liens on their property. Whether it is a first lien subordination, second lien subordination, or subsequent lien subordination, these agreements enable property owners to access additional financing while protecting the interests of lenders. If you are considering subordinating a lien in Ohio, it is advisable to consult with a qualified attorney or mortgage professional to ensure compliance with state laws and protect your rights.