Property Ownership

A Maryland property owner has a mortgage but also takes out a home equity line of credit (HELOC). The HELOC is typically:

AA first lien on the property
BA subordinate (second) lien behind the first mortgage✓ Correct
CNot recorded in the land records
DEqual in priority to the first mortgage

Explanation

A HELOC is a second mortgage — a subordinate lien — that ranks behind the first mortgage in priority. In foreclosure, the first lien is paid first.

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