Subordination is a term that refers to secondary financing. It means to keep a second or third loan in the same position when a first mortgage is being paid off and a new first mortgage is to be made.

HOC’s secondary financing for closing costs are second or third loans. Sometimes they can be subordinated and sometimes they cannot. If they cannot be subordinated, the loan must be paid off when you pay off the first. You have to request subordination through HOC.

Payoff figures for the secondary loans are obtained from the servicer, Dovenmuehle Mortgage, Inc., which is where you send your payments for the secondary loans.