Subordination

What is Subordination?

The procedure of subordinating one debt to a debt that has superior and priority standing. Thus, a second mortgage or existing lien will be subordinated to the first mortgage by the signing and filing of a subordination agreement.

Further Reading

For more detailed information, see our related Security Transactions And Mortgages terms:

• Subordinate
• Senior Lien
• Equity Line of Credit
• Encumbrance
• Lien Creditor

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Stephanie Bagnall

Licensed Attorney and Legal Researcher

Stephanie Bagnall is a Georgia-licensed attorney and legal researcher with experience in accessibility law, compliance, employment law, and legal writing. She helps develop and review BarPrepHero's Legal Terms content for clarity, accuracy, and usefulness to bar exam students.

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