When a junior mortgagee advances funds used to satisfy a senior mortgage, the equitable subrogation doctrine permits the junior mortgagee to step into the senior mortgagee's shoes, and to obtain priority over interests junior to the senior mortgage.
The Scope of the Equitable Subrogation Doctrine
Recently, the Second Department faced three claims of equitable subrogation over a two-week period and in two of those cases, indicated that the doctrine would not be applicable if the junior mortgagee advanced funds to satisfy a senior mortgage with knowledge of an interest whose priority was inferior to that senior mortgage.

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