Escrow & Title
A subordination agreement allows:
AA junior lien to become senior to a previously recorded lien✓ Correct
BA lender to release a lien on the property
CThe borrower to defer mortgage payments
DThe title company to insure around a defect
Explanation
A subordination agreement is a legal document in which a senior lienholder agrees to allow their lien to become subordinate (junior) to a newer lien. This is commonly used when refinancing to allow a new first mortgage to take priority.
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