Tennessee Real Estate Exam Practice Question
A subordination agreement is used to
Correct Answer: A
Rationale: A subordination agreement is primarily used to change the priority of mortgages, allowing a lender to take a subordinate position behind another mortgage. This is crucial in refinancing or obtaining additional financing.
Option B is incorrect as subordination agreements do not initiate foreclosure; they simply adjust mortgage priority. Option C is misleading; while it involves property, it does not pertain to changing priority. Option D, while related to lender rights, does not involve changing mortgage priority and focuses instead on managing rental income during default.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now