what does subordination of a second mortgage mean?
When you refinance your first mortgage and there is a 2nd that is not being paid off, it has to be subordinated. That means that the 2nd mortgage lender agrees to remain in 2nd position. What happens is when you payoff your first mortgage, the 2nd mortgage then becomes a first position lien on title, so the new 1st mtg company requires that the 2nd lien holder subordiante to them and remain in 2nd position.
