This agreement allows one lien holder to subordinate its deed of trust to the lien of another lien holder. For valuable consideration, a particular deed of trust will at all times be prior and superior to the subordinate lien.
Keywords: Hawaii Subordination Agreement of Deed of Trust, types, description The Hawaii Subordination Agreement of Deed of Trust is a legal document used in real estate transactions to prioritize the lien on a property. A subordination agreement is necessary when a property owner wants to refinance their existing mortgage or obtain a new loan while retaining the original mortgage. By signing this agreement, the mortgagor consents to subordinate their deed of trust to a new or refinanced mortgage. In the context of Hawaii, there are two main types of Subordination Agreements of Deed of Trust: 1. Open-End Subordination Agreement: This type of agreement applies when the property owner wishes to take out a new loan or mortgage that will have priority over the existing deed of trust. The agreement outlines the terms and conditions under which the existing mortgage holder agrees to subordinate their lien to the new mortgage or loan. This type of subordination agreement allows the homeowner to unlock the equity in their property without paying off the existing mortgage. 2. Closed-End Subordination Agreement: In contrast to the open-end subordination agreement, the closed-end agreement is executed when the property owner wants to refinance their existing mortgage or obtain a new loan while keeping the existing mortgage intact but with a lower priority. This agreement ensures that the new mortgage will have a primary position, and the existing mortgage will become subordinate to it. It is commonly used to secure a better interest rate or loan terms. Regardless of the type, a Hawaii Subordination Agreement of Deed of Trust typically includes essential information such as the identities of the parties involved, details about the existing mortgage, the new mortgage or loan terms, the priority order, and any other relevant clauses or provisions. It is crucial for property owners in Hawaii to understand the implications of signing a Subordination Agreement of Deed of Trust, as it affects the priority of liens on their property. Seeking legal advice from a qualified attorney or a licensed real estate professional can help ensure that the agreement aligns with the owner's best interests and protects their rights.
