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Mortgage Glossary

Lien Position

Mike Starr·Reviewed August 2026

Lien position refers to the priority order in which lenders are repaid if a property is sold or foreclosed. The first mortgage holds first lien position and is repaid before any other lenders. Second mortgages, HELOCs, and home equity loans hold subordinate (second or third) positions and carry more risk because they are repaid only after senior liens are satisfied.