Which term refers to the oldest lien against a property?

The term that refers to the oldest lien against a property is known as the first mortgage. This is the primary loan taken out to purchase the property, establishing the first priority in terms of financial claims. In the event of foreclosure, the first mortgage lender has the highest priority when it comes to recovering funds, as they are the initial lienholder.

The first mortgage secures the loan with the property itself, ensuring that the lender has a legal right to collect the owed amounts, which typically includes both principal and interest, before any other claims can be made against the property in question. This aspect of the first mortgage is crucial; it determines the order of liens and affects investors' and lenders' willingness to finance any additional loans against the property.

Other liens, such as second mortgages or judgment liens, may exist but are subordinate to the first mortgage, meaning they will only receive payment after the claims of the first mortgage have been satisfied. This hierarchy of liens is essential in real estate transactions and impacts the overall financing structure for property owners.