In mortgage priority, which statement correctly describes junior mortgages?

In mortgage priority, which statement correctly describes junior mortgages?

• A. They are subordinate to mortgages recorded before them
• B. They have priority over all other liens
• C. They are never enforceable against the property
• D. They automatically become senior after five years

Answer: (A)

In mortgage priority, who gets paid first is determined by the recording order of liens. A junior mortgage is one that is recorded after a more senior mortgage, so it is subordinate to that earlier lien. This means that if there’s a foreclosure or sale, the proceeds go first to satisfy the senior lien, and only after those funds are exhausted does the junior lien get paid, if anything remains. That’s why the statement that junior mortgages are subordinate to mortgages recorded before them is the correct description. Think of it as a line of creditors where the oldest claims take the front seats. If there isn’t enough money to cover all debts, the later-in-line lenders (the junior ones) may receive little or nothing, depending on what the sale proceeds can pay. The other options don’t fit because they describe something that isn’t true about junior liens: they don’t outrank all other liens, they are enforceable against the property (even though they’re subordinate), and their priority does not automatically change after a set period like five years.

In mortgage priority, who gets paid first is determined by the recording order of liens. A junior mortgage is one that is recorded after a more senior mortgage, so it is subordinate to that earlier lien. This means that if there’s a foreclosure or sale, the proceeds go first to satisfy the senior lien, and only after those funds are exhausted does the junior lien get paid, if anything remains. That’s why the statement that junior mortgages are subordinate to mortgages recorded before them is the correct description.

Think of it as a line of creditors where the oldest claims take the front seats. If there isn’t enough money to cover all debts, the later-in-line lenders (the junior ones) may receive little or nothing, depending on what the sale proceeds can pay.

The other options don’t fit because they describe something that isn’t true about junior liens: they don’t outrank all other liens, they are enforceable against the property (even though they’re subordinate), and their priority does not automatically change after a set period like five years.