Ask Question
9 October, 06:27

Kate purchased a townhome and obtained financing from Bank A on February 1, 2014. On April 1, 2014, she took out a home equity loan on the property with Bank B. On August 1, 2015, Kate refinanced her mortgage through Bank C, which resulted in Bank A's loan being paid off. Bank B signed a subordination agreement related to Bank C's loan. Which lender currently holds the subordinate loan?

+3
Answers (1)
  1. 9 October, 07:06
    0
    Answer:Bank B

    Explanation:

    Subordinate loan is a loan taken with a mortgage property, while the mortgagee takes first right on the property in case of defaults by mortgagor, the subordinate loan lender gets less piority to the mortgagee on default of the mortgagor.

    In the above scenario Bank A is the mortgagee while Bank B entered into a subordinate loan. On the refinancing of the mortgage by Bank C it has taken the position of the mortgagee, while Bank B still holds the subordinate loan.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Kate purchased a townhome and obtained financing from Bank A on February 1, 2014. On April 1, 2014, she took out a home equity loan on the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers