[b:98f3abc95c]Subordinate Financing[/b:98f3abc95c] refers to any loan or mortgage that has a lower priority than that of the first mortgage. It is also known as simultaneous second.
[b:98f3abc95c]Facts:[/b:98f3abc95c][list:98f3abc95c][*:98f3abc95c]It is a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] on the property which is not paid off when a new loan is taken out, and is considered when a loan is being refinanced.
[*:98f3abc95c]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.[/list:u:98f3abc95c]