Escrow & Title
In Mississippi, a property has both a first mortgage lien and a junior (second) judgment lien against it. If the first mortgage lender forecloses, the outcome for the second lien is typically:
AThe second lien survives the foreclosure with full priority
BThe junior judgment lien is extinguished by the first mortgage foreclosure✓ Correct
CBoth liens must be paid before foreclosure can proceed
DThe second lien converts to an easement on the property
Explanation
When a senior lienholder (first mortgage) forecloses, junior liens are generally extinguished. The junior lienholder would need to be paid from any excess proceeds after the senior lien is satisfied, but they typically lose their lien on the property.
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