Junior mortgage

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Related to Junior mortgage: Purchase Money Mortgage

Junior mortgage

A mortgage that will be satisfied only after more senior mortgages have been satisfied. E.g., a first mortgage will be satisfied prior to a second or a third mortgage.

Junior Mortgage

A mortgage secured by a lien on a property that is subordinate to another mortgage on the same property. One may take out a junior mortgage to pay for home repairs or for any number of other reasons. A junior mortgage carries a higher interest rate than a primary mortgage because the lien is less secure. A second mortgage is a junior mortgage, as are third and fourth mortgages. See also: Piggyback mortgage.
References in periodicals archive ?
I argued that courts should use their equitable powers to recharacterize mezzanine loans and preferred equity investments as junior mortgages.
Unlike traditional junior mortgages or even silent second mortgages, mezzanine loans are very subordinated compared to other traditional real estate loans.
Although the solution becomes more complex when the junior mortgage is considered, the result is much more in line with market evidence.
09) is the estimated value of the loan assumption, including the effect of the junior mortgage required to make the purchase possible.
Of course, if we assume there is a mortgage lien that was previously junior to a judgment lien and that the mortgage lien survives the foreclosure, and that the junior judgment lien is destroyed but immediately reattaches, then logic suggests that the previously senior judgment lien could lose priority to the previously junior mortgage lien.
Most courts stress that "[p]ublic policy requires [the] revival of junior mortgages.
Potentially troubling are the "125 LTV loans," junior mortgages in which the borrower is allowed an aggregate mortgage debt totaling as much as 125 percent of the market value of the mortgaged property.
Although such junior mortgages may be seen as a desperate measure for cash-strapped homeowners, they can provide benefits to both the borrower and the lender.

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