Escrow & Title
In New Mexico, a 'subordination agreement' is used when:
AA buyer wants to cancel the purchase contract
BA junior lienholder agrees to lower their lien priority relative to a new or refinanced senior lien✓ Correct
CThe title company insures a gap in the chain of title
DAn easement is terminated
Explanation
A subordination agreement has a junior lienholder (e.g.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
EasementA non-possessory right to use another person's land for a specific purpose.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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