Final answer:
The order of priority among junior liens is determined by the date of recording, not by loan amount, interest rate, or property value.
Step-by-step explanation:
Among junior liens, the order of priority is generally established according to the date of recording. This means that the chronology of when each lien was officially recorded with the relevant governmental body usually determines their rank. Should a borrower default on their loans, this order dictates how the proceeds from a foreclosure sale will be distributed among lienholders. Therefore, the correct answer is a. Date of recording.
Other factors, such as the loan amount, interest rate, or property value, may affect the market value of a loan or investor's interest in purchasing a loan, particularly in the secondary loan market. Yet, these do not impact the lien position or priority. The priority of liens is a legally defined sequence that safeguards the rights of creditors and can significantly affect investors' decisions.