Escrow & Title
A Virginia property has a deed of trust lien and a judgment lien. The deed of trust was recorded first. At foreclosure, how are proceeds distributed?
AThe judgment lien is paid first
BThe deed of trust is paid first, then the judgment lien from remaining proceeds✓ Correct
CBoth liens are paid equally
DThe court decides payment order arbitrarily
Explanation
Priority follows recording order (first in time, first in right). The first deed of trust is paid from foreclosure proceeds before the later-recorded judgment lien.
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