Re: code enforcement liens


Posted by Julio Martinez-Clark on February 28, 2008 at 11:56:00:


In Reply to: Re: code enforcement liens
Posted by Ernie on February 28, 2008 at 11:24:21:

Ernie,

The sales proceeds will go to the 1st lien holder, then to the 2nd lien holder, then whatever is left (if any) goes to the previous owner.

I recommend you study from Wikipedia (h-t-tp://en.wikipedia.org/wiki/Subordination_%28finance%29) the concept of subordination of security priority:

Subordination of security priority

"Subordination is also an issue in the priority of security interests in the ownership of property. For example, in real estate, mortgages and other liens on the title to secure the payment or repayment of money usually take their priority from the time they attach to the title. The purpose of this ordering of priority is to determine, in a foreclosure resulting from a default, who gets paid first with the sale proceeds from the foreclosure proceeding. Earlier mortgages or other liens are often subordinated by their holders to later ones in order to accomplish agreed-upon ends. An example is for the holder of a mortgage on undeveloped land to subordinate that mortgage to a later construction loan mortgage. The motivation is either the belief that improvement of the land will benefit the first lender or that the first mortgage requires that it be subordinated to a future construction loan."

Julio Martinez-Clark


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