Escrow & Title
What is 'lien priority' and why does it matter in Illinois real estate?
AThe order in which liens appear on the credit report
BThe order in which lien holders are paid from foreclosure sale proceeds; generally first in time, first in right✓ Correct
CIDFPR's ranking of different types of property liens
DThe order of priority in which to record different types of documents
Explanation
Lien priority determines the order in which creditors are paid from foreclosure sale proceeds. In Illinois, the general rule is 'first in time, first in right'—lien holders are paid in the order they recorded. Exceptions include property taxes and special assessments, which have super-priority. Understanding lien priority is critical for lenders, buyers at foreclosure sales, and anyone dealing with encumbered properties.
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