Can someone please provide a bit of clarification. I am doing my due diligence on a property that i am interested in making an offer on, but am a bit confused on the information provided.
Details: Satisfaction of Mortgage .....11/9/11
Subordination of Mortgage....1/26/12
Not sure what this means. I thought you when you have a Satisfaction of Mortgage, you payed your mortgage off.
Is the Subordination of Mortgage a lien or second mortgage? and what does this mean?
Thanks to all in advance.
Subordination means if the borrower defaults, the subordinate lender will get the liquidated money after the lender above him. Lenders usually like to be on top of the list, because they have the first right to the property. And thus usually the subordinate lender charges higher rate because of higher risk.
You may go to your town or county to ask for details.
@Zach Liu ....thanks for your reply.
But i am still confused as this seller does not have a mortgage or so the public records says.
Why is there a Subordination of Mortgage when there is no mortgage?
Am i missing something?
Just go into contact with the seller and get title insurance. See what what the title report shows and go from there.
That's interesting, definitely ask the seller for explanation if you can not find information in public record.
@Benjamin Cowles .....I did not bother to pursue as this. I found something better.
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