What does subordinate mean in mortgage?

A mortgage can have two owners: the lender and the borrower. There are two types of mortgages: first-lien and second-lien. A first-lien mortgage is when the lender has the first claim on the property until the loan is repaid in full. A second-lien mortgage is when the lender has the second claim on the property. If the borrower cannot pay off the first mortgage, the lender will take the house to satisfy the debt in the order of their lien

What does subordinate mean in mortgage application?

You will often find a mortgage with a subordinate lien on the deed This means the lender has a secondary claim on the property in case the primary mortgage is not repaid. This is different from a deed of trust, which is the deed for the property. A mortgage can be a second mortgage, where the first mortgage is on the deed, or it can be a home equity mortgage, where the first mortgage is on the home equity, rather than the property. If you take out a home equity

What does subordinate clause mean in mortgage terms?

When a lender gives a person or entity authority to act on their behalf, the action is referred to as a power of attorney. One type of power of attorney is a mortgage power of attorney. When a mortgage lender gives a mortgage lender’s employee power of attorney to sign mortgage-related documents on their behalf, that employee is said to have a subordinate mortgage power of attorney.

What does subordinate clause mean in mortgage loan?

A subordinate mortgage loan is one where the lender takes a secondary position to the primary mortgage on the property. For example, if you get a $500,000 loan on your house, and the bank that offers you the loan says that they will take a secondary position to the first mortgage, such as the mortgage on your parents’ house, then they would be the second mortgage holder. In this case, if you default on your loan, the bank would not try to take your house back.

What is subordinate clause in mortgage?

A subordinate clause is a small part of a longer sentence or paragraph. It can refer back to the main clause or to the previous clause. In a mortgage, the subordinate clause is the repayment schedule. It states that the lender will collect interest and principal payments on the loan according to a certain schedule.