Definition
A first lien is the lien with highest priority, typically the primary mortgage. First lienholders are paid first from sale proceeds, giving them the most secure position.
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The first lien is usually the primary mortgage, recorded when the property is financed. First lienholders have the most secure position and lowest risk, allowing them to offer lower interest rates. In foreclosure or sale, first lienholders are paid before all other creditors. This senior position is why lenders require first lien position before approving mortgages.
Pro Tip
Lenders require first lien position. Subordinate liens require lender consent.
Example
A primary mortgage is the first lien on the property, giving the lender priority to be paid from sale proceeds before second mortgages or judgment creditors.