Finance
A second mortgage is subordinate to the first mortgage, meaning:
AIt has a lower interest rate than the first mortgage
BIn the event of foreclosure, the first mortgage is paid off before the second mortgage✓ Correct
CIt cannot be foreclosed independently
DIt is issued by a government agency
Explanation
Subordination means the second mortgage lien is junior (lower priority) to the first mortgage. In a foreclosure, proceeds are distributed to lienholders in order of priority, so the first mortgage is paid first.
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