Lien priority determines the order in which lienholders are paid. In most states, liens have priority in the order they were filed in the county recorder’s office; this is known as the “first in time, first in right” rule. Generally, when a home is purchased and a first mortgage is taken out, the mortgage is recorded first and becomes the first lien in line.
However, some states have passed statutes that give certain liens a higher priority than others. Common examples includes mechanic’s liens or homeowner association liens.