Finance
In Michigan, a 'second mortgage' (junior lien) has what priority relative to the first mortgage?
AEqual priority in foreclosure
BSubordinate priority—the first mortgage is paid first in a foreclosure sale✓ Correct
CSuperior priority because it was most recently recorded
DPriority only if the second lender agrees in writing
Explanation
A second mortgage is a junior lien: in a Michigan foreclosure, the first mortgage lender is paid first from sale proceeds, and the second mortgage lender receives any remaining funds. This subordinate position makes second mortgages riskier for lenders.
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