Property Ownership
In NJ, a 'subordination agreement' in a mortgage transaction means:
AThe borrower's debt is forgiven
BA senior lien holder agrees to accept a lower priority position to allow a new loan to take first lien position✓ Correct
CThe property is subdivided
DThe mortgage is transferred to another lender
Explanation
A subordination agreement allows a lien holder to voluntarily accept a lower (junior) priority position so that another lender can take first lien priority, often necessary when refinancing to allow the new lender first position.
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