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 piggyback loan is a financial arrangement involving two loans simultaneously to the same borrower, typically to eliminate private mortgage insurance (PMI) or to secure more favorable terms.
Subordination refers to the process of establishing the priority of one claim or debt over another. It is commonly used in various fields including finance and real estate to manage the hierarchy of obligations and claims.
