Escrow & Title
Iowa's lien priority rules establish that, in general, liens are paid in which order if a property is sold through foreclosure?
AAll liens share equally from sale proceeds
BProperty taxes first, then recorded mortgages and liens in order of recording date✓ Correct
CPrivate mortgages first, then government liens
DThe most recent lien is paid first
Explanation
Iowa lien priority generally follows: (1) property taxes and special assessments (statutory super-priority), (2) recorded mortgages and liens in chronological order of recording. The first mortgage recorded typically has the highest priority among private liens.
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