If I hold the first and the second is forclosing

August 28th, 2008 by Jarad S.

Question: If I hold the first and the second is foreclosing
what can I do to ensure that I will still be paid?

Answer: -Lien holders get paid based upon lien priority and there are a few “rules”.  Lien priority is based upon when things are recorded.  So if you are in 1st position, you will get paid before someone in 2nd, 3rd, etc.  So if they 2nd forecloses and no one bids, they have to pay off all senior lien holders.  Property taxes are the only exception, they always get seniority over everything no matter when they are recorded.

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