junior lien or mortgage

junior lien or mortgage

Refers to the priority of payment if a property must be liquidated to satisfy the debts against it.The first recorded lien or mortgage will be paid first out of sale proceeds,up to the entire amount of the debt,including principal,interests,legal fees,and expenses.If there is any money remaining,junior lienholders (which include junior mortgages) will be paid in full in the order of their priority until the money runs out.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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