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Subordination refers to the process where one creditor's claim on a real estate asset is made junior to another creditor's claim, commonly occurring during debt refinancing. In the context of real estate, claims are prioritized chronologically based on when they are recorded. Initially, a property may have senior debt, which holds priority. If junior debt is added later, it is subordinated to the senior debt. However, if the senior debt is refinanced and a new loan is placed after the junior debt, the earlier junior debt remains subordinate, illustrating how the order of claims can shift with refinancing activities.