Posted: Mon Apr 05, 2004 12:40 am Post subject: Subordinate Financing
Subordinate Financing refers to any loan or mortgage that has a lower priority than that of the first mortgage. It is also known as simultaneous second.
Facts:
It is a second mortgage on the property which is not paid off when a new loan is taken out, and is considered when a loan is being refinanced.
It is established at the same time the first lien is established and be must either paid off before closing or at closing, or should be given a lower priority than the new first lien.
Jun Cecilio Guest
Posted: Tue Nov 11, 2008 11:59 pm Post subject: Subordinate Financing
What will happen the the amount of the subordinate financing.
Jun Cecilio Guest
Posted: Wed Nov 12, 2008 12:05 am Post subject: Subrdinate financing
I applied to have my mortgage modified owing 343,000, it was set up to be refinanced for 145,000 with 205,000 subordinate financing. My question is, what will happen to the 205,000 and will I pay for this at some later time? Please help me understand this process, Thank You.
As far as subordinate financing is concerned, you will have to first pay off the primary loan and then start paying the subordinate one. If its a sort of lien on the property, then the primary lien needs to be paid first and then the subordinate lien.
Sam
