Escrow & Title
A Connecticut property is sold at foreclosure. The proceeds are $280,000. The amounts owed are: first mortgage $200,000; mechanic's lien $25,000; second mortgage $80,000; property tax lien $8,000. In what order are the liens paid?
AFirst mortgage → second mortgage → mechanic's lien → property tax
BProperty tax → first mortgage → mechanic's lien → second mortgage (insufficient funds)✓ Correct
CMechanic's lien → property tax → first mortgage → second mortgage
DAll liens share pro-rata from the proceeds
Explanation
Property tax liens have super-priority and are paid first. Then liens are paid in order of priority (usually date of recording).
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