In foreclosure, which lien is paid first?

In foreclosure, which lien is paid first?

• A. The lien with the lowest amount.
• B. The lien with the latest recorded date.
• C. The lien with the highest priority (senior) is paid first.
• D. All liens pay equally regardless of priority.

Answer: (C)

Lien priority governs how foreclosure proceeds are distributed. The most senior lien has the first claim on the sale proceeds, so it is paid before any junior liens. This is why the lien with the highest priority is paid first. The other options don’t fit because payoff isn’t based on the lien’s dollar amount, its recording date, or an equal split among liens. (Note: in some cases, tax liens or special assessments can have superpriority over other liens.)

Lien priority governs how foreclosure proceeds are distributed. The most senior lien has the first claim on the sale proceeds, so it is paid before any junior liens. This is why the lien with the highest priority is paid first. The other options don’t fit because payoff isn’t based on the lien’s dollar amount, its recording date, or an equal split among liens. (Note: in some cases, tax liens or special assessments can have superpriority over other liens.)