Final answer:
The first debt to be paid off when a home is sold to pay off unpaid debts is a mortgage loan.
Step-by-step explanation:
The first debt to be paid off when a home is sold to pay off unpaid debts is a mortgage loan. A mortgage loan is a line of credit for a home that is typically repaid over a long period of time, such as 30 years.
The value of the mortgage loan is calculated based on what other parties in the market are willing to pay for it, and it is considered an asset for the bank.