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.
An Idaho Subordination Agreement of Deed of Trust is a legal document that outlines the priority of claims on a property in the state of Idaho when multiple parties have a financial interest in that property. This agreement is commonly used in real estate transactions, especially when a property owner wishes to refinance or obtain additional financing while there is an existing mortgage or deed of trust on the property. In Idaho, there are two main types of Subordination Agreement of Deed of Trust: 1. First Lien Subordination Agreement: This type of agreement is used when the property owner wants to take out a new loan that will be in first priority, meaning it will have precedence over any existing liens or encumbrances on the property. By signing this agreement, the existing lien holder agrees to subordinate their claim to the new loan, allowing the new lender to have the first right to the property in case of foreclosure or sale. 2. Second Lien Subordination Agreement: This type of agreement is utilized when the property owner wants to obtain a second loan, which needs to be prioritized behind the existing lien(s). The second lien holder agrees to subordinate their claim to the existing lien(s), ensuring that the primary mortgage or deed of trust retains its first priority position. By signing this agreement, the second lien holder acknowledges that they will only be satisfied after the first lien holder's claim has been fully paid off. Both types of Idaho Subordination Agreement of Deed of Trust are essential in facilitating refinancing or obtaining additional financing while safeguarding the interests of all parties involved. These agreements help establish the order of payment priority and protect the rights of lenders in regard to the property in question. Keywords: Idaho, Subordination Agreement of Deed of Trust, refinancing, additional financing, property, real estate transactions, mortgage, liens, encumbrances, first lien, second lien, priority, foreclosure, sale, refinancing, lenders.
