In a scenario where liens were recorded at different times and a current-year tax lien exists, which lien would generally take priority after the tax lien?

In a scenario where liens were recorded at different times and a current-year tax lien exists, which lien would generally take priority after the tax lien?

• A. First mortgage lien.
• B. Mechanic's lien.
• C. Real estate tax lien.
• D. Second mortgage lien.

Answer: (A)

Property taxes hold the highest priority, so a current-year real estate tax lien must be paid first. After that, liens are typically paid in the order they were recorded. Because the first mortgage lien generally is recorded before other non-tax liens (like a second mortgage or a mechanic’s lien), it would usually take priority next. Mechanic’s liens can have different priorities in some situations (for example, based on when work commenced or specific state rules), but in the common scenario, the first mortgage lien is next in line after the tax lien.

Property taxes hold the highest priority, so a current-year real estate tax lien must be paid first. After that, liens are typically paid in the order they were recorded. Because the first mortgage lien generally is recorded before other non-tax liens (like a second mortgage or a mechanic’s lien), it would usually take priority next. Mechanic’s liens can have different priorities in some situations (for example, based on when work commenced or specific state rules), but in the common scenario, the first mortgage lien is next in line after the tax lien.