I think this has been discussed here before, but I couldn't find it. I will be receiving a deed of trust to record and was told it's "one of those auto subordinations", where there are 2 mortgages on the property and they are refinancing the first mortgage, and this new mortgage will automatically be in first position. I dont mean to sound ignorant but I havent seen one yet so I am wondering if it will say on the deed of trust something to the effect of it being an automatic subordination. Has anyone had one of these yet? So when doing a search we really need to be on the lookout for an "auto subordinated" deed of trust. Will the deed of trust have some wording to alert us? Or is it that all re-fi's are now automatically subordinated, therefore if its a re-fi it automatically takes the place of the original deed of trust? What if its a re-fi with a different lender? Can it only be auto-subordinated with the same lender?
If someone could point me to where I could read up on this, that would be great. But I'll tell ya, I'm just not liking this auto-subordination thing.
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