{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-319.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-319.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-319.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-319.html"}],"law_id":75054,"edition_id":1,"section_id":75054,"structure_id":15078,"section_number":"55.1-319","catch_line":"Priority of residential refinance mortgage over subordinate mortgage","history":"2000, c. 971, \u00a7 55-58.3; 2002, c. 172; 2003, c. 381; 2011, c. 77; 2014, c. 338; 2019, c. 712; 2021, Sp. Sess. I, c. 13.","full_text":"A\n\nAs used in this section:\n\t\t\t“Prior mortgage” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a financing.\n\t\t\t“Refinance mortgage” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a refinancing.\n\t\t\t“Refinancing” means the replacement of a loan secured by a prior mortgage with a new loan secured by a refinance mortgage and the payment in full of the debt owed under the original loan secured by the prior mortgage.\n\t\t\t“Subordinate mortgage” means a mortgage or deed of trust securing an original principal amount not exceeding $150,000, encumbering or conveying an interest in residential real estate containing not more than one dwelling unit that is subordinate in priority (i) under subdivision A 1 of § 55.1-407 or (ii) as a result of a previous refinancing.B\n\nUpon the refinancing of a prior mortgage, a subordinate mortgage shall retain the same subordinate position with respect to a refinance mortgage as the subordinate mortgage had with the prior mortgage, provided that:1\n\nSuch refinance mortgage states on the first page thereof in bold or capitalized letters: “THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK’S OFFICE, CIRCUIT COURT OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK ______, PAGE ______, IN THE ORIGINAL PRINCIPAL AMOUNT OF ______, AND WITH THE OUTSTANDING PRINCIPAL BALANCE WHICH IS ______ WHICH HAD AN INTEREST RATE OF ___% PER ANNUM.”;2\n\nThe principal amount secured by such refinance mortgage does not exceed the outstanding principal balance secured by the prior mortgage plus $5,000; and3\n\nThe interest rate of the refinance mortgage at the time it is recorded does not exceed the interest rate of the prior mortgage. The interest rate of the prior mortgage shall be stated on the first page of the refinance mortgage.C\n\nThe priorities among two or more subordinate mortgages shall be governed by subdivision A 1 of § 55.1-407.D\n\nThe provisions of subsection B shall not apply to a subordinate mortgage securing a promissory note payable to any locality or any agency, authority, or political subdivision of the Commonwealth if such subordinate mortgage is financed pursuant to an affordable dwelling unit ordinance adopted pursuant to § 15.2-2304 or 15.2-2305, or pursuant to any program authorized by federal or state law or local ordinance or resolution, for (i) low-income and moderate-income persons or households or (ii) improvements to residential potable water supplies and sanitary sewage disposal systems made to address an existing or potential public health hazard, and which mortgage, if recorded on or after July 1, 2003, states on the first page thereof in bold or capitalized letters: “THIS (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY HEREUNDER, BE SUBORDINATED UPON THE REFINANCING OF ANY PRIOR MORTGAGE.”","order_by":null,"text":{"0":{"id":269577,"text":"As used in this section:\n\t\t\t“Prior mortgage” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a financing.\n\t\t\t“Refinance mortgage” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a refinancing.\n\t\t\t“Refinancing” means the replacement of a loan secured by a prior mortgage with a new loan secured by a refinance mortgage and the payment in full of the debt owed under the original loan secured by the prior mortgage.\n\t\t\t“Subordinate mortgage” means a mortgage or deed of trust securing an original principal amount not exceeding $150,000, encumbering or conveying an interest in residential real estate containing not more than one dwelling unit that is subordinate in priority (i) under subdivision A 1 of § 55.1-407 or (ii) as a result of a previous refinancing.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":269578,"text":"Upon the refinancing of a prior mortgage, a subordinate mortgage shall retain the same subordinate position with respect to a refinance mortgage as the subordinate mortgage had with the prior mortgage, provided that:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":269579,"text":"Such refinance mortgage states on the first page thereof in bold or capitalized letters: “THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK’S OFFICE, CIRCUIT COURT OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK ______, PAGE ______, IN THE ORIGINAL PRINCIPAL AMOUNT OF ______, AND WITH THE OUTSTANDING PRINCIPAL BALANCE WHICH IS ______ WHICH HAD AN INTEREST RATE OF ___% PER ANNUM.”;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":269580,"text":"The principal amount secured by such refinance mortgage does not exceed the outstanding principal balance secured by the prior mortgage plus $5,000; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":269581,"text":"The interest rate of the refinance mortgage at the time it is recorded does not exceed the interest rate of the prior mortgage. The interest rate of the prior mortgage shall be stated on the first page of the refinance mortgage.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":269582,"text":"The priorities among two or more subordinate mortgages shall be governed by subdivision A 1 of § 55.1-407.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"6":{"id":269583,"text":"The provisions of subsection B shall not apply to a subordinate mortgage securing a promissory note payable to any locality or any agency, authority, or political subdivision of the Commonwealth if such subordinate mortgage is financed pursuant to an affordable dwelling unit ordinance adopted pursuant to § 15.2-2304 or 15.2-2305, or pursuant to any program authorized by federal or state law or local ordinance or resolution, for (i) low-income and moderate-income persons or households or (ii) improvements to residential potable water supplies and sanitary sewage disposal systems made to address an existing or potential public health hazard, and which mortgage, if recorded on or after July 1, 2003, states on the first page thereof in bold or capitalized letters: “THIS (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY HEREUNDER, BE SUBORDINATED UPON THE REFINANCING OF ANY PRIOR MORTGAGE.”","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15078,"edition_id":1,"name":"Form and Effect of Deeds of Trust; Sales Thereunder; Assignments; Releases","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13328,"metadata":{},"date_created":"2026-06-26 03:52:02","date_modified":"2026-06-26 03:52:02","permalink":{"id":245061,"object_type":"structure","relational_id":15078,"identifier":"2","token":"55.1\/I\/3\/2","url":"\/55.1\/I\/3\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13328,"edition_id":1,"name":"Form and Effect of Deeds and Covenants; Liens","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":13327,"metadata":{},"date_created":"2026-06-26 03:44:39","date_modified":"2026-06-26 03:44:39","permalink":{"id":244985,"object_type":"structure","relational_id":13328,"identifier":"3","token":"55.1\/I\/3","url":"\/55.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13327,"edition_id":1,"name":"Property Conveyances","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:44:39","date_modified":"2026-06-26 03:44:39","permalink":{"id":244771,"object_type":"structure","relational_id":13327,"identifier":"I","token":"55.1\/I","url":"\/55.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65329,"structure_id":15078,"section_number":"55.1-316","catch_line":"Form of deed of trust to secure debts, etc","url":"\/55.1-316\/","token":"55.1\/I\/3\/2\/55.1-316","metadata":false},{"id":70118,"structure_id":15078,"section_number":"55.1-317","catch_line":"Requirements for trustees","url":"\/55.1-317\/","token":"55.1\/I\/3\/2\/55.1-317","metadata":false},{"id":86332,"structure_id":15078,"section_number":"55.1-318","catch_line":"Credit line deed of trust defined; relative priority of credit line deed of trust and other instruments of judgment","url":"\/55.1-318\/","token":"55.1\/I\/3\/2\/55.1-318","metadata":false},{"id":84678,"structure_id":15078,"section_number":"55.1-318.1","catch_line":"Effect of amendment to loan document on deed of trust","url":"\/55.1-318.1\/","token":"55.1\/I\/3\/2\/55.1-318.1","metadata":false},{"id":75054,"structure_id":15078,"section_number":"55.1-319","catch_line":"Priority of residential refinance mortgage over subordinate mortgage","url":"\/55.1-319\/","token":"55.1\/I\/3\/2\/55.1-319","metadata":false},{"id":84870,"structure_id":15078,"section_number":"55.1-320","catch_line":"How deed of trust construed; duties, rights, etc., of parties","url":"\/55.1-320\/","token":"55.1\/I\/3\/2\/55.1-320","metadata":false},{"id":82152,"structure_id":15078,"section_number":"55.1-321","catch_line":"Notices required before sale by trustee to owners, lienors, etc.; if note lost","url":"\/55.1-321\/","token":"55.1\/I\/3\/2\/55.1-321","metadata":false},{"id":69372,"structure_id":15078,"section_number":"55.1-322","catch_line":"Advertisement required before sale by trustee","url":"\/55.1-322\/","token":"55.1\/I\/3\/2\/55.1-322","metadata":false},{"id":77112,"structure_id":15078,"section_number":"55.1-323","catch_line":"Contents of advertisements of sale","url":"\/55.1-323\/","token":"55.1\/I\/3\/2\/55.1-323","metadata":false},{"id":79384,"structure_id":15078,"section_number":"55.1-324","catch_line":"Powers and duties of trustee in event of sale under or satisfaction of deed of trust","url":"\/55.1-324\/","token":"55.1\/I\/3\/2\/55.1-324","metadata":false},{"id":70971,"structure_id":15078,"section_number":"55.1-325","catch_line":"Meaning of phrases that may be included in deed of trust","url":"\/55.1-325\/","token":"55.1\/I\/3\/2\/55.1-325","metadata":false},{"id":73086,"structure_id":15078,"section_number":"55.1-326","catch_line":"Evidences of indebtedness placed on equal footing","url":"\/55.1-326\/","token":"55.1\/I\/3\/2\/55.1-326","metadata":false},{"id":78854,"structure_id":15078,"section_number":"55.1-327","catch_line":"Sales under deeds of trust that contain no maturity date or provision authorizing sale","url":"\/55.1-327\/","token":"55.1\/I\/3\/2\/55.1-327","metadata":false},{"id":57488,"structure_id":15078,"section_number":"55.1-328","catch_line":"Validation of conveyances of real property under trust instrument not authorizing sale","url":"\/55.1-328\/","token":"55.1\/I\/3\/2\/55.1-328","metadata":false},{"id":86578,"structure_id":15078,"section_number":"55.1-329","catch_line":"Permissible form for notice of sale under deed of trust","url":"\/55.1-329\/","token":"55.1\/I\/3\/2\/55.1-329","metadata":false},{"id":69516,"structure_id":15078,"section_number":"55.1-330","catch_line":"Construction of deeds requiring notice by advertisement in newspaper","url":"\/55.1-330\/","token":"55.1\/I\/3\/2\/55.1-330","metadata":false},{"id":84754,"structure_id":15078,"section_number":"55.1-331","catch_line":"Disposition of surplus from trustee's sale after death of grantor","url":"\/55.1-331\/","token":"55.1\/I\/3\/2\/55.1-331","metadata":false},{"id":75951,"structure_id":15078,"section_number":"55.1-332","catch_line":"Title to real estate sold not affected by nonlisting of secured notes for taxation","url":"\/55.1-332\/","token":"55.1\/I\/3\/2\/55.1-332","metadata":false},{"id":71527,"structure_id":15078,"section_number":"55.1-333","catch_line":"Validation of certain sales made under deeds of trust","url":"\/55.1-333\/","token":"55.1\/I\/3\/2\/55.1-333","metadata":false},{"id":77519,"structure_id":15078,"section_number":"55.1-334","catch_line":"Validation of certain sales made under deeds of trust prior to October 1, 1977","url":"\/55.1-334\/","token":"55.1\/I\/3\/2\/55.1-334","metadata":false},{"id":64323,"structure_id":15078,"section_number":"55.1-335","catch_line":"Validation of other sales under deeds of trust","url":"\/55.1-335\/","token":"55.1\/I\/3\/2\/55.1-335","metadata":false},{"id":80410,"structure_id":15078,"section_number":"55.1-336","catch_line":"Protection of assignees or transferees of debts secured by real estate; form of certificate of transfer","url":"\/55.1-336\/","token":"55.1\/I\/3\/2\/55.1-336","metadata":false},{"id":60195,"structure_id":15078,"section_number":"55.1-337","catch_line":"Required notice of foreclosure or repossession of manufactured home","url":"\/55.1-337\/","token":"55.1\/I\/3\/2\/55.1-337","metadata":false},{"id":77976,"structure_id":15078,"section_number":"55.1-338","catch_line":"Release to person dead inures to successors","url":"\/55.1-338\/","token":"55.1\/I\/3\/2\/55.1-338","metadata":false},{"id":82066,"structure_id":15078,"section_number":"55.1-339","catch_line":"Release of deed of trust or other lien","url":"\/55.1-339\/","token":"55.1\/I\/3\/2\/55.1-339","metadata":false},{"id":78869,"structure_id":15078,"section_number":"55.1-340","catch_line":"Release by financial institution upon payment of debt placed with it for collection","url":"\/55.1-340\/","token":"55.1\/I\/3\/2\/55.1-340","metadata":false},{"id":58312,"structure_id":15078,"section_number":"55.1-341","catch_line":"Partial satisfaction","url":"\/55.1-341\/","token":"55.1\/I\/3\/2\/55.1-341","metadata":false},{"id":65250,"structure_id":15078,"section_number":"55.1-342","catch_line":"Permissible form for certificate of satisfaction or certificate of partial satisfaction","url":"\/55.1-342\/","token":"55.1\/I\/3\/2\/55.1-342","metadata":false},{"id":72373,"structure_id":15078,"section_number":"55.1-343","catch_line":"Where certificates of satisfaction are to be indexed","url":"\/55.1-343\/","token":"55.1\/I\/3\/2\/55.1-343","metadata":false},{"id":74812,"structure_id":15078,"section_number":"55.1-344","catch_line":"Releases made by court; costs and attorney fees","url":"\/55.1-344\/","token":"55.1\/I\/3\/2\/55.1-344","metadata":false},{"id":78458,"structure_id":15078,"section_number":"55.1-345","catch_line":"Recordation of certificate of satisfaction, etc., required when release of lien recorded","url":"\/55.1-345\/","token":"55.1\/I\/3\/2\/55.1-345","metadata":false}],"previous_section":{"id":84678,"structure_id":15078,"section_number":"55.1-318.1","catch_line":"Effect of amendment to loan document on deed of trust","url":"\/55.1-318.1\/","token":"55.1\/I\/3\/2\/55.1-318.1","metadata":false},"next_section":{"id":84870,"structure_id":15078,"section_number":"55.1-320","catch_line":"How deed of trust construed; duties, rights, etc., of parties","url":"\/55.1-320\/","token":"55.1\/I\/3\/2\/55.1-320","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-319\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapter 971<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2002, chapter 172<\/a>; in 2003, chapter 381<\/a>; in 2011, chapter 77<\/a>; in 2014, chapter 338<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":[{"id":86332,"section_number":"55.1-318","catch_line":"Credit line deed of trust defined; relative priority of credit line deed of trust and other instruments of judgment","order_by":null,"url":"\/55.1-318\/"}],"refers_to":[{"id":63382,"section_number":"15.2-2304","catch_line":"Affordable dwelling unit ordinances in certain localities","order_by":null,"url":"\/15.2-2304\/"},{"id":66597,"section_number":"15.2-2305","catch_line":"Affordable dwelling unit ordinances","order_by":null,"url":"\/15.2-2305\/"},{"id":76968,"section_number":"55.1-407","catch_line":"Contracts, etc., void as to creditors and purchasers until recorded; priority of credit line deed of trust","order_by":null,"url":"\/55.1-407\/"}],"permalink":{"id":245079,"object_type":"law","relational_id":75054,"identifier":"55.1-319","token":"55.1\/I\/3\/2\/55.1-319","url":"\/55.1-319\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-319\/","token":"55.1\/I\/3\/2\/55.1-319","dublin_core":{"Title":"Priority of residential refinance mortgage over subordinate mortgage","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-319","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Prior mortgage<\/span>” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a financing.\n\t\t\t“Refinance mortgage<\/span>” means a mortgage, deed of trust, or other instrument encumbering or conveying an interest in residential real estate containing not more than one dwelling unit to secure a refinancing<\/span>.\n\t\t\t“Refinancing<\/span>” means the replacement of a loan secured by a prior mortgage<\/span> with a new loan secured by a refinance mortgage<\/span> and the payment in full of the debt owed under the original loan secured by the prior mortgage<\/span>.\n\t\t\t“Subordinate mortgage<\/span>” means a mortgage or deed of trust securing an original principal amount not exceeding $150,000, encumbering or conveying an interest in residential real estate containing not more than one dwelling unit that is subordinate in priority (i) under subdivision A 1 of § 55.1-407<\/a> or (ii) as a result of a previous refinancing<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Upon the refinancing<\/span> of a prior mortgage<\/span>, a subordinate mortgage<\/span> shall retain the same subordinate position with respect to a refinance mortgage<\/span> as the subordinate mortgage<\/span> had with the prior mortgage<\/span>, provided that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Such refinance mortgage<\/span> states on the first page thereof in bold or capitalized letters: “THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK’S OFFICE, CIRCUIT<\/span> COURT<\/span> OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK ______, PAGE ______, IN THE ORIGINAL PRINCIPAL AMOUNT OF ______, AND WITH THE OUTSTANDING PRINCIPAL BALANCE WHICH IS ______ WHICH HAD AN INTEREST RATE OF ___% PER ANNUM.”; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The principal amount secured by such refinance mortgage<\/span> does not exceed the outstanding principal balance secured by the prior mortgage<\/span> plus $5,000; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The interest rate of the refinance mortgage<\/span> at the time it is recorded does not exceed the interest rate of the prior mortgage<\/span>. The interest rate of the prior mortgage<\/span> shall be stated on the first page of the refinance mortgage<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The priorities among two or more subordinate mortgages<\/span> shall be governed by subdivision A 1 of § 55.1-407<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The provisions of subsection B shall not apply to a subordinate mortgage<\/span> securing a promissory note payable to any locality or any agency, authority, or political subdivision of the Commonwealth if such subordinate mortgage<\/span> is financed pursuant to an affordable dwelling unit ordinance<\/span> adopted pursuant to § 15.2-2304<\/a> or 15.2-2305<\/a>, or pursuant to any program authorized by federal or state law<\/span> or local ordinance<\/span> or resolution, for (i) low-income and moderate-income persons or households or (ii) improvements to residential potable water supplies and sanitary sewage disposal systems made to address an existing or potential public health hazard, and which mortgage, if recorded on or after July 1, 2003, states on the first page thereof in bold or capitalized letters: “THIS (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY<\/span> HEREUNDER, BE SUBORDINATED UPON THE REFINANCING<\/span> OF ANY PRIOR MORTGAGE<\/span>.” <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRIORITY OF RESIDENTIAL REFINANCE MORTGAGE OVER SUBORDINATE MORTGAGE (\u00a7\n55.1-319)\n\nA. As used in this section:\n\t\t\t“Prior mortgage” means a mortgage, deed of trust, or other\ninstrument encumbering or conveying an interest in residential real estate\ncontaining not more than one dwelling unit to secure a financing.\n\t\t\t“Refinance mortgage” means a mortgage, deed of trust, or other\ninstrument encumbering or conveying an interest in residential real estate\ncontaining not more than one dwelling unit to secure a refinancing.\n\t\t\t“Refinancing” means the replacement of a loan secured by a prior\nmortgage with a new loan secured by a refinance mortgage and the payment in full\nof the debt owed under the original loan secured by the prior mortgage.\n\t\t\t“Subordinate mortgage” means a mortgage or deed of trust securing\nan original principal amount not exceeding $150,000, encumbering or conveying an\ninterest in residential real estate containing not more than one dwelling unit\nthat is subordinate in priority (i) under subdivision A 1 of § 55.1-407 or\n(ii) as a result of a previous refinancing.\n\nB. Upon the refinancing of a prior mortgage, a subordinate mortgage shall retain\nthe same subordinate position with respect to a refinance mortgage as the\nsubordinate mortgage had with the prior mortgage, provided that:\n\n 1. Such refinance mortgage states on the first page thereof in bold or\n capitalized letters: “THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE\n OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK’S OFFICE, CIRCUIT\n COURT OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK ______, PAGE ______,\n IN THE ORIGINAL PRINCIPAL AMOUNT OF ______, AND WITH THE OUTSTANDING PRINCIPAL\n BALANCE WHICH IS ______ WHICH HAD AN INTEREST RATE OF ___% PER ANNUM.”;\n\n 2. The principal amount secured by such refinance mortgage does not exceed the\n outstanding principal balance secured by the prior mortgage plus $5,000; and\n\n 3. The interest rate of the refinance mortgage at the time it is recorded does\n not exceed the interest rate of the prior mortgage. The interest rate of the\n prior mortgage shall be stated on the first page of the refinance mortgage.\n\nC. The priorities among two or more subordinate mortgages shall be governed by\nsubdivision A 1 of § 55.1-407.\n\nD. The provisions of subsection B shall not apply to a subordinate mortgage\nsecuring a promissory note payable to any locality or any agency, authority, or\npolitical subdivision of the Commonwealth if such subordinate mortgage is\nfinanced pursuant to an affordable dwelling unit ordinance adopted pursuant to\n§ 15.2-2304 or 15.2-2305, or pursuant to any program authorized by federal\nor state law or local ordinance or resolution, for (i) low-income and\nmoderate-income persons or households or (ii) improvements to residential\npotable water supplies and sanitary sewage disposal systems made to address an\nexisting or potential public health hazard, and which mortgage, if recorded on\nor after July 1, 2003, states on the first page thereof in bold or capitalized\nletters: “THIS (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) SHALL\nNOT, WITHOUT THE CONSENT OF THE SECURED PARTY HEREUNDER, BE SUBORDINATED UPON\nTHE REFINANCING OF ANY PRIOR MORTGAGE.”\n\nHISTORY: 2000, c. 971, \u00a7 55-58.3; 2002, c. 172; 2003, c. 381; 2011, c. 77;\n2014, c. 338; 2019, c. 712; 2021, Sp. Sess. I, c. 13.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}