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Home / Opinion Digests / Partial subordination rule applied in foreclosure case (access required)

Partial subordination rule applied in foreclosure case (access required)

Where a bank had first- and third-priority liens on real property and recorded an agreement that subordinated the first-priority lien to the third-priority lien, the liens survived when the second-priority lienholder foreclosed after the property owners defaulted. The agreement was a partial subordination, which did not elevate the second-priority lienholder’s status. Background The Cortezes owned real property encumbered ...