Question

Dave had a bad year. In February, he defaulted on his mortgage. In March, a carpenter built a deck on Dave's house. In April, that carpenter secured a mechanic's lien for work and materials since Dave wasn't able to pay his bill. In June, a judge signed a judgement lien against Dave and all of his real and personal property. Finally, Dave realized that he forgot to pay his property taxes, which should have been due in August. Which of the following liens has priority after a court-ordered foreclosure of Dave's home?

A) Mechanic's lien
B) Judgement lien
C) Mortgage lien
D) Property tax lien

Answer 1

In Dave's situation, the property tax lien would have priority after a court-ordered foreclosure, as property tax liens typically take precedence over other liens such as mechanic's, judgment, and mortgage liens.

Step-by-step explanation:

When a court-ordered foreclosure of Dave's home is carried out, the priority of liens is usually determined by the principle of 'first in time, first in right.' However, certain liens take precedence regardless of when they were placed on the property. In the scenario provided, although the mechanic's lien, judgement lien, and mortgage lien are all important, property tax liens generally have priority over all other liens and this is typically enforced by law. Therefore, after a court-ordered foreclosure, the lien for unpaid property taxes that should have been paid in August would have priority over the other liens.