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): ___________________