Finance
In Texas, a 'junior lien' means:
AA lien with a smaller dollar amount
BA lien that has lower priority than a senior lien in foreclosure proceedings✓ Correct
CA lien created by a minor
DA lien filed less than one year after a senior lien
Explanation
A junior lien has lower priority than a senior lien in terms of payment upon foreclosure or sale. A second mortgage is junior to the first mortgage. In a foreclosure, senior liens are paid first; junior lienholders may receive nothing if the proceeds don't cover all liens. Junior lienholders face higher risk, which is why junior loans have higher interest rates.
Related Texas Finance Questions
- A Texas homestead is protected from forced sale for all of the following EXCEPT:
- The Texas Home Equity Loan/HELOC rules require that at least 12 days must pass between:
- Under the Texas Constitution, a home equity loan or HELOC cannot be made to a homestead owner more than:
- A Texas home seller who finances part of the purchase with a second lien 'seller carry back' should be aware that:
- A Texas buyer's lender requires a 'title report' before funding. This is because the lender wants to ensure:
- In Texas, a 'purchase money mortgage' that a seller takes back as part of the sale price typically:
- Texas's 'Save Our Homes' (SOH) cap limits the annual increase in the appraised value of a homestead for tax purposes to:
- Texas's 'Homestead Preservation District' (HPD) program is designed to:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →