The mechanic lien vs 1st lender or tax lien which party gets the money first after the property sold due to liens or default of mortgage payments ?
1 reply
May 13, 2020
Property tax liens in California have priority over all previous liens. Cal. Rev. and Tax Code §2192.1. For other tax liens it will depend. Federal tax liens are usually subordinate to previously recorded deeds of trust or mortgages. A mechanic's lien will be subordinate to property tax liens and any mortgage, deed of trust, or other lien recorded before the first day of work on the project. With respect to other tax liens mechanic's liens may have priority if the first day of work was before the tax lien was asserted.