Subordinate Financing

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Icon Mini Profile Sam
Sam
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Post Posted: Mon Apr 05, 2004 12:40 am    Post subject: Subordinate Financing
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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

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Post Posted: Tue Nov 11, 2008 11:59 pm    Post subject: Subordinate Financing
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What will happen the the amount of the subordinate financing.
Jun Cecilio

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Post Posted: Wed Nov 12, 2008 12:05 am    Post subject: Subrdinate financing
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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.
Icon Mini Profile jerry
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Post Posted: Wed Nov 12, 2008 1:51 am    Post subject:
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Hi Jun Cecilio!

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.

Thanks,

Jerry
shirley

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Post Posted: Sun Sep 12, 2010 12:03 am    Post subject: who pay,s this modey back /when
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when doe,s this money have to be pay back
Icon Mini Profile Niicss
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Post Posted: Mon Sep 13, 2010 2:54 am    Post subject:
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Though it's a subordinate lien, you will have to pay it off through regular monthly payments within a given term period.
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