Escrow & Title

A junior lien in Indiana is:

AA lien placed by a minor contractor
BA lien that has a lower priority than another lien on the same property✓ Correct
CA lien placed by the federal government
DA lien that is recorded but not yet effective

Explanation

A junior lien has lower priority than a senior lien. In foreclosure, senior lienholders are paid first from sale proceeds. Junior liens (second mortgages, mechanic's liens junior to the first mortgage) are paid only after senior claims are satisfied.

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