Are the various liens that may be placed against real property "prioritized?"?

Question

Like if somebody has a tax lien and a mechanics lienn, who will get paid first if the house sells? Is there like a priority to pay somebody off before the other person? Hope this makes sense!

10 Points Best Answer.

Thank You!

Answer 1

Tax liens come first.

Mortgages come second. There are first mortgages, and second mortgages (ie, home equity lines of credit).

Then there are maintenance liens (ie, if the county comes out and mows the lawn and charges you $400) and mechanics'/contractors' liens.

That's about it. If you sell your house, and everybody else gets paid, you might finally get something. Hope that helps.

Answer 2

The Gov always gets their money first. Tax liens get paid before anything else. After that it's based on the date of recordation.

Answer 3

Liens are prioritized by filing date except Property Tax, IRS, & HOA liens go to the front of the line.

Answer 4

Yes there is priority. An expressed lien, like a mortgage will have priority over an implied lien like an arisans lien. Also, certain liens have automatic priority like a tax lien.

Answer 5

tax liens gets paid first.

the mechanics lien is garbage & only valid a limited amount of time.

point of a mechanics lien is to hold your place in line while you initiate your civil action. once you obtain judgment then you file the judgment lien and it would be placed in the spot in line where the mechanics lien was.

Answer 6

Yes they are prioritized.Property tax liens are always first.Then any other gov. obligations-child support,inc.tax,etc.In most places they go by age of the lien.Oldest to youngest.