If It Walks Like a Junior Lien And Talks Like A Junior Lien

I got a third on my property right before I refinanced my loan. The first and second were paid but not the third. Would this put that 3rd in first position since it wasn’t paid off?

It was signed and notarized but not recorded until after the refi. (not sure if that makes a difference)

I’d really appreciate your opinion. Thanks!

Carol

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Hi Carol,

If it was recorded after the refinance then it is in junior position, so no it is not in first position. 

It’s funny that you mention this because I’ve seen two seconds where the first was refinanced and the first did not have the second enter into a re-subordination agreement.  The first mortgages are filling foreclosure and we’re submitting short sales to the first with a full payoff of the seconds (because they are really first mortgage liens).

Thanks for the questions and hope this helps.

Paul