Escrow & Title
In Louisiana, a property may have both a conventional mortgage and a judgment lien. In the event of a foreclosure, which would typically be paid first?
AThe judgment lien regardless of date
BThe mortgage recorded first in the parish mortgage records has priority (first in time, first in right)✓ Correct
CBoth are paid equally from the proceeds
DThe largest debt is always paid first
Explanation
Louisiana follows the 'first in time, first in right' principle for mortgage priority — the lien recorded first in the parish mortgage records generally has priority over later-recorded liens, subject to specific exceptions (e.g.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
EasementA non-possessory right to use another person's land for a specific purpose.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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