What happens if I have a second mortgage that I don't want to pay off with my new first mortgage?
A subordination generally occurs when a member has a primary mortgage and a second mortgage (Home Equity Loan). When refinancing the first mortgage, the second mortgage would move into the first position automatically as the older mortgage. Generally, this is not acceptable to the first mortgage company, and they will require a subordination, which puts the second mortgage into the second position behind the first mortgage. The Subordination Agreement is the legal document that sets this up and gets filed with the county along with the refinanced first mortgage.
Should you need a subordination, please see the below document. The required information is usually submitted by your new lender. After all documentation and payment is received, it will be reviewed, and forwarded to our attorney's office for processing within two business days. It will be received back from our attorney and sent to the address provided within ten business days.