Which lien will be the last one to be paid from the proceeds of the sale of a house with five recorded liens?

The last lien to be paid from the proceeds of the sale of a house is typically the second mortgage lien. In general, lien priority dictates the order in which claims against the proceeds of a sale will be settled.

Real estate tax liens usually hold the highest priority, meaning they are paid first. They are followed by special assessment liens, then mechanic's liens, which are related to unpaid work performed on the property. These types of liens are considered superior due to their nature and the timing of their recording.

A second mortgage lien is subordinate to any first mortgage lien and any property tax assessments. In a selling scenario, after satisfying all superior liens, there are leftover proceeds that may go towards the second mortgage lien. Hence, it becomes the last priority when it comes to being paid from the proceeds of the sale of the house.

Understanding the hierarchy of lien priority is crucial in real estate, as it impacts sellers, buyers, and financial institutions involved in property transactions.