An Ohio homeowner has a first mortgage and wants to take out a home equity loan. The home equity lender wants first lien position. To accomplish this, the first mortgage lender would need to agree to:
Correct Answer
B) A subordination agreement
A subordination agreement is a document where the holder of a senior lien agrees to allow their lien to become subordinate (junior) to another lien. In this case, the first mortgage lender would sign a subordination agreement to allow the home equity lender to take first lien position.
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