In the event of a foreclosure, which lien has the lowest priority?

In the context of foreclosure, liens are prioritized based on their type, with certain liens having a higher claim against the property than others. The correct choice states that an unsecured judgment is the lowest priority lien.

When a property is foreclosed, it first satisfies the most senior liens before addressing those of lower priority. Property taxes are typically at the top, as they have a first priority lien status. This means that any unpaid property taxes must be settled before other types of liens can be addressed. Following property taxes, mortgages come next in line since they are secured loans with a claim to the property in case of default.

Special assessments are generally levied by municipalities for improvements that benefit the property, such as sidewalks or street lights, and they often hold a priority status, similar to property taxes. Therefore, both property taxes and special assessments take precedence in the event of a foreclosure.

In contrast, an unsecured judgment does not attach to a specific property and lacks the same claim as those secured by the property. This type of lien is typically satisfied only after all secured liens, such as mortgages and tax liens, have been paid. As such, it holds the lowest priority, making it the correct answer in this context.