Finance
In Hawaii, what is 'subordinate financing'?
AA. Financing with a lower interest rate than the primary mortgage
BB. A second or junior mortgage that is subordinate to the first mortgage in lien priority✓ Correct
CC. Financing provided by a smaller community lender
DD. Partial financing where the buyer pays part cash and part financed
Explanation
Subordinate financing refers to second or additional mortgages that are junior in lien priority to the first mortgage. In foreclosure, the first mortgage is paid before subordinate liens.
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