Definition from Nolo’s Plain-English Law Dictionary
A written contract in which a lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to subordinate its loan (accept a lower priority for the collection of its debt), thus giving the new loan priority in any foreclosure or payoff. The agreement must be acknowledged by a notary so that it can be recorded in the official county records. (See also: subordination
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:25 pm