Free template
Mortgage Subordination Agreement Template
Change lien priority with a clear, record-ready mortgage subordination agreement using this template.
Downloaded 4148 times
Download template
Mortgage Subordination Agreement Template
This Mortgage Subordination Agreement (the “Agreement”) is entered into as of [Effective Date] by and among:
Subordinating Lender (“Junior Lienholder”): [Lender Name], address: [Address].
Senior Lender (“Priority Lienholder”): [Lender Name], address: [Address].
Borrower/Property Owner: [Borrower Name], address: [Address].
The parties may be referred to individually as a “Party” and collectively as the “Parties.”
1. Property
1.1 Property Address. [Street address].
1.2 Legal Description. Attached as Exhibit A or inserted here: [Legal description].
2. Existing Junior Lien (To Be Subordinated)
2.1 Loan/Mortgage Date: [Date].
2.2 Original Principal (Optional): $[Amount].
2.3 Recording Information: Recorded on [Date] as Instrument No. [__] in [County/Registry].
2.4 Secured By: ☐ Mortgage ☐ Deed of Trust (the “Junior Instrument”).
3. Senior Lien (To Have Priority)
3.1 Loan/Mortgage Date: [Date].
3.2 Principal (Approx.). $[Amount].
3.3 Recording Information: (to be recorded) [Details if known].
3.4 Secured By: ☐ Mortgage ☐ Deed of Trust (the “Senior Instrument”).
4. Subordination and Priority
4.1 Subordination. Junior Lienholder agrees that the Junior Instrument is and will remain subordinate in priority to the Senior Instrument and all obligations secured by it, including renewals, extensions, modifications, and advances as allowed by law.
4.2 Priority Order. Senior Instrument will have first priority; Junior Instrument will have second (or lower) priority.
4.3 No Other Changes. Except for lien priority, the Junior Instrument remains unchanged.
5. Borrower Acknowledgment
5.1 Borrower acknowledges and agrees to the subordination terms stated in this Agreement.
6. Authority and Representations
6.1 Each signing party represents it has authority to enter into this Agreement.
6.2 Junior Lienholder represents it is the current holder of the Junior Instrument.
7. Recording
7.1 The Parties intend for this Agreement to be recorded in the land records of [County/Registry].
7.2 Borrower will pay recording fees: ☐ Yes ☐ No (if no, specify payer): [Party].
8. Governing Law
8.1 This Agreement is governed by the laws of [State/Country].
9. Entire Agreement
9.1 This Agreement is the entire agreement regarding lien priority between the Parties.
Signatures
By signing below, the Parties agree to this Mortgage Subordination Agreement as of the Effective Date.
Junior Lienholder (Subordinating Lender): [Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________
Senior Lender (Priority Lienholder): [Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________
Borrower/Property Owner: [Full Name]
Date: [Date]
Signature: ___________________________
Witnesses (If Required)
Witness #1 Name: [Name]
Date: [Date]
Signature: ___________________________
Witness #2 Name: [Name]
Date: [Date]
Signature: ___________________________
Notary / Notarization (If Required)
State of [State]
County of [County]
On [Date], before me, [Notary Name], personally appeared [Junior Lender Signer Name], [Senior Lender Signer Name], and [Borrower Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Agreement, and acknowledged that they executed it for the purposes stated.
Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________
Flash deal
Flash deal
Today
Today
No time to fill it up? Generate your custom agreement with AI Lawyer in seconds
What’s Included
Legal Research
Legal Research
Legal Research
Contract Drafting
Contract Drafting
Contract Drafting
Document Review
Document Review
Document Review
Risk Analytics
Risk Analytics
Risk Analytics
Citation Verification
Citation Verification
Citation Verification
Easy-to-understand jargon
Easy-to-understand jargon
Easy-to-understand jargon
Details
Learn more about
Mortgage Subordination Agreement Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
MORTGAGE SUBORDINATION AGREEMENT TEMPLATE FAQ
What is a mortgage subordination agreement?
A Mortgage Subordination Agreement is a document where a lienholder (usually an existing mortgage lender) agrees that its lien will be lower priority than another lien. This is commonly needed when refinancing, taking a second loan, or recording a new deed of trust while keeping an existing lien in place.
When is subordination needed?
Subordination is often required when: (1) a homeowner refinances and a second lien exists, (2) a home equity line or second mortgage must stay in place but be re-ordered, or (3) a new construction or rehab loan requires first-lien priority. This template is a general structure — lenders often have their own required forms.
What should be included?
Include: the subordinating lender (current lienholder), the senior lender (new/priority lien), property description, the existing lien details (recording info), the new lien details, and a clear statement of priority. This template includes a recording section and an exhibit for the legal description.
Does this change the loan terms?
Usually no. It changes lien priority only, not the underlying payment terms, unless the parties separately amend the loan documents.
Does it have to be recorded?
Typically yes. Recording provides public notice of the priority change. Recording rules vary by jurisdiction. This template includes a recording clause.
What is AI Lawyer?
AI Lawyer is an AI-powered assistant that helps you create and customize legal and business document templates online. It guides you through key sections, suggests wording, and explains complex concepts in simple language. AI Lawyer does not replace a licensed attorney or provide legal advice, but helps you prepare better documents faster and more confidently.
Similar templates
Other templates from
Real Estate
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime