Basically, when refinancing a mortgage that carries a second mortgage, it’s required of that lender to sign a subordination document.
Justin’s expanded definition covers details regarding the steps and how to avoid potential pitfalls:
While it can be tricky to get a subordination approved, if you have a second mortgage it is important you remember that you will want to discuss the specific requirements with your loan officer before either of you spend a great deal of time and effort into refinancing your first mortgage.
We hope you have been finding the mortgage definition feature of the Mortgages Unzipped blog useful. Subscribe today to get the best in consumer mortgage content.