Lien Priority

Lien Priority (Who Gets Paid First?)When a house is sold (especially in foreclosure), there is a specific order of payout. If there isn't enough money, the people at the bottom get nothing.The Hierarchy:Superior Liens (The "Super" Three):These ALWAYS get paid first, regardless of when they were recorded.Real Property Taxes.Special Assessment Liens.Federal Estate Tax Lien (rare, but superior).Junior Liens (Everyone Else):These are paid based on Date of Recording (Time).Mortgage, Vendor's Lien, Judgment Lien, Income Tax Lien.Exception: Construction Liens date back to when work started, not when filed.Satisfaction of Lien:When a debt is paid in full, the lienholder must record a Satisfaction of Lien (or Release) to clear the title.