A first mortgage is a primary loan that has priority as a lien over all other mortgages. In cases of foreclosure, the first mortgage will be satisfied before other mortgages.
A Junior Lien is a secondary claim on property collateral that will be paid after earlier liens, also known as senior liens, have been satisfied. This hierarchical structuring of claims often influences the risk and terms associated with secondary loans or mortgages.
A junior mortgage, also known as a second mortgage or subordinate mortgage, is a mortgage loan that is subordinate to another loan against the same property. In the event of default and foreclosure, the holder of the junior mortgage is only repaid after the senior mortgage and any other prior liens have been settled.
A subordinated lien created by a mortgage loan over the amount of a first mortgage, often used to reduce the amount of a cash downpayment or to raise cash in refinancing.
Secondary financing refers to additional loans or mortgages taken out on a property that already has an existing or primary mortgage. This type of financing is often used to cover down payments, renovations, or other expenses.
Seller financing, also known as owner financing, is a method in which the seller of a property provides a loan to the buyer for the purchase of the property, as opposed to the buyer obtaining a mortgage through a third-party lender. This is often used when traditional lender financing is unavailable or less attractive.
