Mortgage Approval: Obtaining A Subordination Agreement For Your 2nd Mortgage Or HELOC
Refinancing With A 2nd Mortgage – A Subordination Agreement Is Needed
If you are refinancing your primary mortgage, you may have a second mortgage or home equity loan in place. If so, a subordination agreement from the servicer of that second loan will be required.
A subordination agreement is an acceptance letter from the servicer of your second mortgage stating that they agree to remain the second lien holder on the property, behind your new primary mortgage holder.
The biggest obstacle in obtaining this document is getting the servicers to process this request in a timely fashion. They may take anywhere from 1.5 to 6 weeks to complete the request, which could negatively affect your rate lock.
Many times, a call from the customer is pivotal in getting the request process and completed on time. Please keep an eye out for a call from us asking to enlist your help in pushing the servicer along.