first mortgage

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First mortgage

A type of mortgage that through a lien gives precedence to the lender of the first mortgage over all other lenders in case of default.

First Mortgage

A mortgage on a property in which the lender has the right to full payment before any other lenders or liens on the same property are paid. That is, if the borrower defaults on the mortgage, the lender of the first mortgage has first right to the property and other lenders using the same property as collateral may only use it after the first lender has been fully satisfied. Generally speaking, first mortgages carry lower risk for lenders than other mortgages.

first mortgage

A real estate loan with the right to payment in full before payments to other lenders are made. First mortgages are generally considered low-risk investments, although the quality of real estate pledged as collateral is of crucial importance in determining the riskiness of the mortgage.

first mortgage

A real estate loan made to the borrower and recorded in the public records by the lender,before any other mortgages.

First Mortgage

A mortgage that has a first-priority claim against the property in the event the borrower defaults on the loan.

For example, a borrower defaults on a loan secured by a property worth $100,000 net of sale costs. The property has a first mortgage with a balance of $90,000 and a second mortgage with a balance of $15,000. The first mortgage lender can collect $90,000 plus any unpaid interest and foreclosure costs. The second mortgage lender can collect only what is left of the $100,000.

References in periodicals archive ?
Howe arranged more than $61 million in loans for area cooperatives in August, including the largest loan of the month, a $39 million first mortgage for Glen Oaks Village, a 2,904-unit co-op located in Glen Oaks, NY.
5 million in loans during August, including a $4 million first mortgage for an 89-unit co-op located at 2199 Holland Avenue in Bronx, N.
5 million first mortgage for a 114-unit co-op located at 140 East Second Street in Brooklyn, NY; a $2.
This investment highlights the value proposition we offer to lenders with our ability to invest in mezzanine and first mortgage loans.
4 million first mortgage and a $1 million line of credit for Manor Towers, a 190-unit co-op located at 3671 Hudson Manor Terrace in Riverdale, NY; a $2.
The 125 percent first mortgage is available for single-family detached homes only, although a similar 110 percent mortgage will be available for attached PUDs (Private Unit Developments) and condominiums.
7 million in financing during May, including a $5 million first mortgage and a $500,000 line of credit for a 346-unit co-op located at 230 Garth Road in Scarsdale, NY.
7 million first mortgage and a $1 million line of credit for a 151-unit co-op located at 60 Riverside Drive in Manhattan; a $2.
Howe arranged more than $11 million in loans for area co-operatives in July, including a $4 million first mortgage and a $500,000 line of credit for a 117-unit co-op located at 16 North Broadway in White Plains, N.
Howe arranged more than $72 million in loans for area cooperatives in June, including the largest financing during the month a $29 million first mortgage and a $3 million line of credit for Kings Village Corp.
NCB's senior vice president Mindy Goldstein arranged a total of $28 million in loans during May, including a $5 million first mortgage and a $750,000 line of credit for a 68-unit co-op located at 310 and 320 West 86th Street in Manhattan; a $3.
6 million first mortgage and a $300,000 line of credit for a 300unit co-op located at 181 Long Hill Road in Little Falls, NJ.