Escrow & Title
In Ohio, a 'subordination agreement' in real estate lending allows:
AA junior lien to maintain its position when a senior mortgage is refinanced
BA senior lienholder to move their lien to a junior position, allowing a new first mortgage to be placed on the property✓ Correct
CA borrower to subordinate their personal assets to the mortgage
DThe tenant to subordinate their lease to the landlord's mortgage
Explanation
A subordination agreement allows an existing lienholder to voluntarily step down to a junior position. This is used, for example, when a seller carries back a purchase money mortgage and agrees to be subordinate to the new first mortgage.
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