Escrow & Title
In Colorado, a 'junior lien' holder is paid at foreclosure:
AA. Before the senior lien holder
BB. After the senior (first) lien holder from any remaining sale proceeds✓ Correct
CC. At the same time as all other lien holders
DD. Only if the property sells for more than the first mortgage balance
Explanation
Liens are paid in order of priority (generally the order they were recorded). In a foreclosure sale, the senior (first priority) lien holder is paid first from the proceeds. Junior lien holders are paid in order from remaining proceeds. If the proceeds are insufficient, junior lien holders may receive nothing and may have a deficiency claim against the borrower.
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