subordination clause

Definition

Clause in some mortgages which allows subsequent mortgages on the same property to have higher claim than the current mortgage.

Use this term in a sentence

You may want to try and put in a subordination clause so that you know you will have greater flexibility.

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The subordination clause was a really good thing to have in the mortgage for a variety of very good reasons.

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The subordination clause was not present on this mortgage so the second lien was wiped out when the first was not paid.

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subordination agreement subpart F