Finance
Vermont's 'first mortgage' position in a multi-lien property means the first mortgage holder receives:
AThe lowest priority of repayment in foreclosure
BThe highest lien priority (after property taxes and other super-priority liens) and is paid first from foreclosure proceeds✓ Correct
CEqual priority with all other mortgages
DPayment only after all unsecured creditors
Explanation
A first mortgage in Vermont holds the highest priority among voluntary mortgage liens (after involuntary super-priority liens like property taxes). In foreclosure, the first mortgage is satisfied before second mortgages, judgment liens, and other junior liens from the sale proceeds.
Related Vermont Finance Questions
- What is the primary purpose of Private Mortgage Insurance (PMI) in a Vermont residential mortgage?
- Vermont's USDA Rural Development loan program benefits buyers in:
- A Vermont property investor who uses leverage means:
- Vermont property owners who fall behind on their mortgage should be aware that Vermont's foreclosure redemption period allows:
- Vermont mortgage lenders must comply with the Community Reinvestment Act (CRA) by:
- Vermont does NOT have which of the following, making it one of the more borrower-friendly states for mortgage lending?
- Vermont's note (promissory note) in a mortgage transaction is:
- Vermont's '1031 exchange' (like-kind exchange) allows real estate investors to:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →