Escrow & Title
In Texas, a 'subordination agreement' is used when:
AA lender wants to take a senior position over an existing lien
BA senior lienholder agrees to allow their lien to be junior to a new lien✓ Correct
CA tenant agrees to accept a lesser interest in the property
DA title company reduces its insurance coverage
Explanation
A subordination agreement is a document in which a senior lienholder (such as a first mortgage holder) agrees to allow their lien to become junior to a new lien (such as a new first mortgage). This is commonly needed when refinancing to allow the new lender to have first position.
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