In a foreclosure, which lien is paid first?

Prepare for the Real Estate Express Course Exam with a comprehensive quiz including flashcards and multiple-choice questions. Review hints and explanations for each question to ensure you're ready for the test!

Multiple Choice

In a foreclosure, which lien is paid first?

Explanation:
The key idea is lien priority in foreclosure. Government property tax liens have the highest priority by law, so they are paid first from the proceeds of the sale. This statutory priority ensures taxes are collected even when a property is in default, outranking all private liens like first or second mortgages and even mechanics’ liens. So, from a foreclosure sale, the real estate tax lien is satisfied before the other liens.

The key idea is lien priority in foreclosure. Government property tax liens have the highest priority by law, so they are paid first from the proceeds of the sale. This statutory priority ensures taxes are collected even when a property is in default, outranking all private liens like first or second mortgages and even mechanics’ liens. So, from a foreclosure sale, the real estate tax lien is satisfied before the other liens.

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