Second Mortgage Subordination in Florida
FL second mortgage subordination: second stays subordinate when first is refinanced. Without: new first would be junior. Required: refinancing (new first lender requires), HELOC, and construction loans. Fee: $10-$500 typical. Factors: combined LTV (80-90% max), borrower credit, purpose (rate vs. cash-out), payment history, and property value. Cash-out: higher risk. High LTV: may refuse to subordinate.
When Required
- First mortgage refinance
- HELOC staying open
- Construction loans
Process
- Second holder agrees to stay subordinate
- Fee: $10-$500
- New first closes with subordination
Factors
- Combined LTV: 80-90% max
- Borrower credit, payment history
- Cash-out = higher risk
Related Terms
- Mortgage Subordination — FL specifics
Barnes Walker Real Estate
Barnes Walker’s attorneys handle second mortgage subordination in Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC