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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
(44) The Central District of California bankruptcy court provides a local form motion and order, (45) as well as a local form for an adversary complaint (46) to strip off an unsecured junior mortgage. Apparently, the selection of the proper form depends on the particular judge's preference.
(49) This distinction might also account for some underutilization of the junior mortgage strip off.
Absent the junior mortgage, the cash equivalent price would be $115,000 minus the difference between the amount owed on the assumed loan on the date of assumption and the present value of the assumed mortgage payments discounted at the market interest rate for conventional loans (10% in this example).
Although the solution becomes more complex when the junior mortgage is considered, the result is much more in line with market evidence.
The growth of mezzanine loans is due in part to the national rating agencies' belief that traditional junior mortgage financing increases the likelihood and severity of default with the first mortgage.
(22.) 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.
1st DCA 1993), the United States was the holder of several junior mortgages all of which were foreclosed by the first mortgagee.
On the other hand, the claim of junior mortgagees and judgment creditors can only be barred by foreclosure.
(2) In the event of foreclosure, the holders of junior mortgages have a lower priority than the holder of a first mortgage.
* Opposing bills that would redefine title insurance to exclude junior mortgages and home equity loans.
Although the availability of sources for this secondary financing is problematic, quality appraisals would nevertheless be an important consideration when junior mortgages are required.
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.

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