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.
Oregon Subordination Agreement of Deed of Trust refers to a legally binding document that outlines the terms and conditions under which one mortgage lien is made junior or subordinate to another lien on the same property. This agreement is often required during real estate transactions, such as refinancing or obtaining a second mortgage. Keywords: Oregon, Subordination Agreement, Deed of Trust, mortgage lien, real estate transactions, refinancing, second mortgage. There are two common types of Oregon Subordination Agreement of Deed of Trust: 1. First Lien Subordination Agreement: This type of agreement involves the primary mortgage lender agreeing to subordinate their lien to a subsequent mortgage or lien. This is typically seen when a homeowner wants to refinance their existing mortgage or obtain a second mortgage on the property. By signing the subordination agreement, the first mortgage lender allows the new mortgage lender to have priority in case of default or foreclosure. 2. Junior Lien Subordination Agreement: This agreement occurs when the primary mortgage lender agrees to subordinate their lien to another junior mortgage or lien. For example, if a homeowner decides to take out a home equity loan or establish a home equity line of credit (HELOT), the primary mortgage lender may require a subordination agreement to protect their interests. By doing so, the primary mortgage lender ensures that their lien remains in first position, while the secondary lien takes second priority. In both types of subordination agreements, it's important to note that the agreement must be signed by all parties involved, including both mortgage lenders and the homeowner. Additionally, the agreement should clearly state the terms of subordination, including any conditions or limitations, and must be recorded in the county where the property is located. Overall, an Oregon Subordination Agreement of Deed of Trust is a crucial legal document that helps establish the order of priority for mortgage liens on a property. It allows for smooth real estate transactions and ensures that all parties involved understand their rights, responsibilities, and the implications of subordination.
