If you’re a homeowner, you’re probably all too familiar with the never-ending stream of bills that seem to come due every month. Between your mortgage, insurance, and utilities, it can be tough to keep up. So, when you get a notice in the mail saying that you owe money for property taxes or a mechanics lien, it can be confusing to figure out which one takes priority.
Generally speaking, property taxes take priority over mechanics liens. That means that if you’re behind on your property taxes, your municipality can foreclose on your home before the lienholder can.
However, there are some exceptions to this rule. For example, in some states, a tax lien does not have priority over a mortgage. So, if you’re behind on your property taxes and you also have a mortgage, your lender could foreclose on your home before the tax authority can.
It’s also important to note that even if a mechanics lien does not have priority over a property tax lien, it can still be a serious problem. If you don’t pay a mechanics lien, the lienholder can foreclose on your home and force you to sell it in order to pay off the debt. So, even though property taxes may take priority in most cases, it’s still important to make sure you pay all of your bills on time to avoid any legal problems.
Other related questions:
Q: What lien takes highest priority?
A: The lien with the highest priority is the one that was recorded first.
Q: What establishes the priority of a mechanic’s lien?
A: A mechanic’s lien is established by the filing of a notice of lien with the appropriate county recorder’s office.
Q: Which lien would be paid first in the event of a foreclosure sale?
A: The lien that would be paid first in the event of a foreclosure sale would be the mortgage lien.
Q: Which type of lien has priority over all other liens regardless of the date placed?
A: A tax lien has priority over all other liens regardless of the date placed.