1st & 2nd Position Notes

[Luke Grieshop]

Can someone, in layman's terms, describe the difference between a 'First position' note and 'Second position' note?

[Jeff V.]

@Luke Grieshop

First position is the first note and mortgage lein recorded against a property.

Second Position is any subsequent note and mortgage lien recorded against a property that already has a first.

Basically First and Second indicates superiority of the lien and who has first dibs when it comes to foreclosure.  Whoever records the lien first has Senior/First Lien status all other liens are Junior to the First/Senior lien.

There are some Super Liens that jump in line for some states like HOA, Municipality and Tax Liens for example.

Hope this helps.

Jeff V