When taking out a mortgage, there are a lot of terms and agreements that need to be understood and signed. One of the most important documents in this process is the subordination acknowledgement and agreement.
For those who are not familiar with the term, subordination is the act of placing a lien or mortgage in a lower priority than another. This is important because it allows the borrower to take out a second mortgage or make other financial decisions without impacting the first mortgage. In essence, it allows for more flexibility in managing finances.
SunTrust is a popular mortgage lender that requires borrowers to sign a subordination acknowledgement and agreement. This document basically states that the borrower understands and agrees to the terms of subordination and acknowledges that their first mortgage takes priority over any subsequent mortgages or liens.
The agreement also outlines the conditions under which subordination may be approved, such as if the borrower wants to take out a home equity loan or if there is a dispute regarding who has priority on the property. The borrower must provide all necessary information and documentation to SunTrust for review and approval of any subordination request.
It is important for borrowers to fully understand the terms of the subordination acknowledgement and agreement before signing. This can be a complex document, but it is essential to protect the borrower`s interests and ensure financial stability.
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