In case of default,the second mortgage lender is paid before the first mortgage is satisfied.

Question

Quizplus · Accepted Answer

In case of default, the first mortgage lender has priority over the second mortgage lender and is paid off before the second mortgage is satisfied. This is because the first mortgage holder has a senior lien position, meaning they have a higher priority over the second mortgage holder in terms of repayment from the proceeds of the sale of the property.

In Case of Default,the Second Mortgage Lender Is Paid Before