1st lien on a property to 1st recording or 1st mortgage execution

4 Replies

As I realize the answer may depend on the State of the property, I am wondering if the 1st lien on a property is given to the 1st mortgage recorded, or the oldest mortgage document execution.

Basically if I have 2 mortgages on my property from lender A and lender B, regardless of the amount.

A is signed on February 15

B signed on March 15,

however B is recorded right away on March 18th and A is recorded on March 30th.

Who has 1st lien position on the property in the court of law?

Thank you

@Jean-marc Cabrol

These issues are very jurisdiction specific so it might help other folks on BP if you specify the state. In Pennsylvania, Lender A will probably win AS LONG AS Lender A complied with all the laws (e.g. recorded the mortgage within the "grace" period). If the Lender A failed to do so, then Lender B will probably win. 

Not that I used the word "probably" above. This is because caselaw on lien-priority matters can get very complicated due to the fact that lenders often litigate these matters in court. For example, the Pennsylvania caselaw on equitable subordination is complicated enough to make my head hurt. 

If this is a situation that you are personally facing, go hire a lawyer. These issues tend to hinge on specific facts. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.