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What Is a Subordination Clause and how does it relate to a HEL?

April 26, 2017clause hel relate subordination

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What Is a Subordination Clause and how does it relate to a HEL?

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Depending on the lender, a subordination clause or agreement most often means that before you can get a second mortgage, the first mortgage company must agree to allow the second home mortgage to be placed in first lien position. The new loan then has the priority in case of a foreclosure.