Dan bought his Los Angeles property last December, and it’s now August. The property is encumbered with the liens shown below. Indicate the order of priority in which the liens would be paid off in case of foreclosure. Do not simply use the date (there are other considerations) • Deed of trust for purchase loan (recorded December 19) • Deed of trust for equity loan (recorded May 31) • Property tax lien for current tax year (attached January 1) • Judgment lien (attached June 2) • Mechanic’s lien for work begun on May 22 (recorded June 15)
Dan bought his Los Angeles property last December, and it’s now August. The property is encumbered with the liens shown below. Indicate the order of priority in which the liens would be paid off in case of foreclosure. Do not simply use the date (there are other considerations) • Deed of trust for purchase loan (recorded December 19) • Deed of trust for equity loan (recorded May 31) • Property tax lien for current tax year (attached January 1) • Judgment lien (attached June 2) • Mechanic’s lien for work begun on May 22 (recorded June 15)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dan bought his Los Angeles property last December, and it’s now
August. The property is encumbered with the liens shown below.
Indicate the order of priority in which the liens would be paid off in case of foreclosure.
Do not simply use the date (there are other considerations)
• Deed of trust for purchase loan (recorded December 19)
• Deed of trust for equity loan (recorded May 31)
• Property tax lien for current tax year (attached January 1)
• Judgment lien (attached June 2)
• Mechanic’s lien for work begun on May 22 (recorded June 15)
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