Get Suntrust Subordination Requirements

A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on payments or declares bankruptcy.

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.

A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on payments or declares bankruptcy.

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But as property values are going up and the demand for refinance isn't as much, it seems that the subordination process has gotten a little easier. Typically, it takes two to three weeks to get the resubordination paperwork through, and it is likely to set you back $200 to $300.

If you refinance your first mortgage but not your second mortgage, the second mortgage is promoted into first position (because it's older than the new first mortgage), and the newly refinanced mortgage takes the junior position.

Subordination is the process of ranking home loans (mortgage, HELOC or home equity loan) by order of importance. ... Through subordination, lenders assign a lien position to these loans. Generally, your mortgage is assigned the first lien position while your HELOC becomes the second lien.

A subordination fee is a fee directly related to the credit transaction. There is no comparable cash transaction to compare it to and a subordination is not a required document to perfect your lien. It's only required to perfect your lien in the position that you required as a condition of making the loan.

An agreement to keep a second (or subordinate ) mortgage in second position, even as the first mortgage is refinanced. The second mortgage is also known as a home equity loan or home equity line of credit.

If you need to get a subordination agreement from a second mortgage lender, contact that lender. Explain that you're refinancing your first mortgage and that the new lender wants a subordination agreement.