Asked by Cassandra Myers on May 02, 2024
Verified
If a property owner executes a junior mortgage on a parcel with an existing mortgage,the junior mortgage is superior to the first.
Junior Mortgage
A mortgage subject to a prior mortgage.
- Grasp the priority rules in the event of competing interests.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
False
Explanation :
A junior mortgage is a second mortgage that is subordinate to the first or primary mortgage on a property. This means that in the event of default, the first mortgage holder has priority over the junior mortgage holder in terms of repayment.
Learning Objectives
- Grasp the priority rules in the event of competing interests.