Escrow & Title
A subordination agreement in real estate allows a later mortgage to:
ATake priority over an earlier recorded mortgage✓ Correct
BBe forgiven by the lender
CExtend its term by 10 years
DConvert to a fixed rate
Explanation
A subordination agreement is a contract where the holder of an earlier-recorded lien agrees to let a later lien take priority. This is common when refinancing to allow the new first mortgage to take priority.
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