Property Ownership
What is 'priority of liens' in Delaware and why does it matter in foreclosure?
AAll liens in Delaware are equal regardless of recording date
BLiens have a priority order that determines who gets paid first when property is sold — generally: (1) property taxes have super-priority, (2) first mortgage, (3) second mortgage, (4) judgment liens by recording date; in foreclosure, senior liens are paid first✓ Correct
CThe lender with the largest loan always has the highest priority
DPriority is determined by the amount owed, not the recording date
Explanation
Lien priority in Delaware determines the order of payment from foreclosure proceeds. Property taxes typically have super-priority (paid before mortgages). Among private liens, priority is generally 'first in time, first in right' based on recording date. In foreclosure, if proceeds are insufficient, junior lienholders (second mortgages, judgment liens) may receive nothing. Understanding lien priority is critical for buyers and investors in foreclosure or distressed property situations.
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