first lien
Top priority debt
A first lien is a legal claim that takes priority over all other claims against the same property.
If the borrower defaults, the first lien holder gets paid before anyone else from the proceeds of sale: The bank holds a first lien on the house.
Mortgages are typically first liens, while home equity loans take second position.
- mortgageSecured home loan
- securedMade fast or obtained
- priorityStatus of greater importance
- collateralSecurity for debt
- seniorHigher in rank
debt · lender · credit risk · foreclosure · loan default · property · real property · claim · creditor · subordinate · title · deed of trust · encumbrance · loan · interest · default · debt collection · repayment