Finance
A Texas seller who carries back a second lien to help a buyer complete a transaction should understand that their second lien is:
AEqual in priority to the first lien
BSubordinate to the first mortgage lender's lien in foreclosure✓ Correct
CSuperior to property tax liens
DUnsecured unless registered with TREC
Explanation
A seller-carried second lien is junior to the first mortgage in priority. In a foreclosure by the first lien holder, the second lien may be wiped out if there are insufficient proceeds after paying off the first lien and foreclosure costs.
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