The Docket: California Court Clarifies Junior Lienholder Rights When Subordinated to Cross-collateralized Loans

April 2, 2013

The California Court of Appeal for the Second Appellate District reversed a prior decision clarifying the rights of junior lienholders who find themselves subordinate to cross?collateralized loans. Read on to learn why the reliance on a subordination agreement may be problematic when underwriting a transaction post-foreclosure.

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