#3 Understand Your Lien Priority

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#3 Understand Your Lien Priority

How Does Lien Priority Effect your Options?

When you buy a home and get a loan for the home, the lender puts a lien on the property. By doing so, the property becomes collateral for the loan. So, in the event the homeowner is unable to make payments, the lender can force the sale of the home to get paid. There can be several liens at one time on a single property, and some liens have priority over others.

Except for tax liens which take precedence over any other lien, lien priority is based on when things get recorded. Whoever records first would be in “Senior” position and any other liens — as with a second mortgage, a Home Equity Line of Credit used for home improvement, or any judgments against the homeowners — would be in “Junior” positions according to when they were filed. Additionally, every home owner should be aware that non-payment of taxes is one more way they can lose their property to foreclosure.

If you’re to discuss your options, or if you are ready for a personal consultation, don’t hesitate to call.


Elva Branson-Lee, Georgia real estate specialist, CDPE

770-475-1130 ext 8889