In the event of foreclosure, which lien must be paid first?

In the event of foreclosure, past due property taxes take precedence over all other liens, including mortgages and personal loans. This means that any unpaid property taxes must be settled before any other claims on the property can be paid.

Foreclosure proceedings do not change the order of priority for liens, which is determined by law. Property taxes are typically collected by local government entities, and they have a high priority because they are essential for funding local services and infrastructure. If a property is sold at foreclosure, the proceeds first go to satisfy any outstanding property tax obligations. Once those taxes are cleared, then other liens, such as loans or mortgages, can be addressed based on their specific priority levels within the remaining funds.

This priority reflects the importance of ensuring local governments can continue operating, making property tax liabilities a crucial factor in foreclosure scenarios.