A BB&T subordination agreement is a legal document that establishes the priority of one party`s claim against a property compared to another party`s claim. In simple terms, it defines who gets paid first if the property is sold or foreclosed upon.

BB&T is a bank that offers subordination agreements to its customers who have second mortgages or other liens on their properties. A subordination agreement is often required when the property owner wants to refinance their mortgage or obtain a new loan.

In a subordination agreement, the first mortgage holder, typically the bank that issued the original loan, agrees to let the second mortgage holder, BB&T, move up in priority. This means that if the property is sold or foreclosed upon, the first mortgage holder will be paid back before BB&T.

Why would the first mortgage holder agree to this? Typically, it`s because the property owner is refinancing their mortgage or obtaining a new loan in order to lower their interest rate or make other changes to their loan. If the second mortgage holder, BB&T, does not agree to subordinate their claim, the property owner may not be able to obtain the new loan, which could put their ability to maintain ownership of the property at risk.

It`s important to note that a subordination agreement does not cancel out or eliminate the second mortgage or lien altogether. BB&T is still entitled to be repaid according to the terms of their original agreement with the property owner.

If you are a property owner with a second mortgage or lien and are considering refinancing or obtaining a new loan, it`s important to understand the implications of a subordination agreement. You should consult with your lender or a legal professional to ensure that you fully understand the terms of the agreement and how it will impact your financial situation.

In conclusion, a BB&T subordination agreement is a legal document that establishes the priority of one party`s claim against a property compared to another party`s claim. It`s an important consideration for property owners who are looking to refinance or obtain a new loan. Make sure you fully understand the terms of a subordination agreement before entering into one.