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Real Estate 101: priority of liens in a foreclosure


One of the most common questions that home buyers have are specific to the priority of liens in a foreclosure sale in Florida. Chapter 702 of the Florida Statutes governs foreclosures of mortgages, agreements for deeds and statutory liens in Florida.

In a foreclosure sale, certain liens become superior to the lien being foreclosed. Therefore, some creditors will receive their money and some creditors might not. Real estate taxes, special assessment liens and federal estate taxes will take precedence over all other liens. Special assessment liens, which is typically a tax levied by a city for improvements, are ahead of junior liens in priority and second only to real estate property taxes.

The table below illustrates the priority of liens in a foreclosure sale in Florida.
In today’s residential real estate market, when a foreclosure sale takes place and any outstanding real estate property taxes are paid, it is not common to find any proceeds from the sale going to any junior lien holder other than the first mortgage mortgage lien holder.

For more info: Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or .