Final answer:
In the event of a property foreclosure, the real estate tax lien will be paid first, followed by the first mortgage lien, any mechanic's liens, and finally the second mortgage lien.
Step-by-step explanation:
In the case of a foreclosure, liens against a property are typically paid in a particular order based on their priority. The priority is generally determined by the nature of the lien and the date it was placed on the property. In the scenario provided, the liens prioritized will be as follows:
- Real estate tax lien: This lien is usually given top priority over all other liens regardless of when it was recorded. Government tax liens are prioritized because they are necessary for the operation and maintenance of public services.
- First mortgage lien: Mortgage liens are usually paid next, in the order that they are recorded. Since a mortgage lien from three years ago would be the oldest lien after tax liens, it gets paid after real estate tax liens.
- Mechanic's lien: This type of lien is related to labor or materials provided to improve the property and is usually paid after mortgage liens and before most other liens if recorded within a permissible time frame which varies by jurisdiction.
- Second mortgage lien: A second mortgage, or any subsequent mortgages, are paid after the primary mortgage and any senior liens.
Given this information, the correct answer to which lien will be paid first in the case of foreclosure is the real estate tax lien.