Escrow & Title
When a Florida mortgage is foreclosed, outstanding junior liens (second mortgages, mechanic's liens) are generally:
AGiven priority over the foreclosing lender
BExtinguished by the foreclosure of the senior lien, with claimants paid from any surplus proceeds✓ Correct
CTransferred to the new owner
DConverted to personal judgments automatically
Explanation
In Florida mortgage foreclosure, junior liens (second mortgages, judgment liens, mechanics' liens that are subordinate to the foreclosing lender) are extinguished by the foreclosure. Junior lienholders may receive proceeds only if there is a surplus after the senior lien is satisfied.
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