first lien position

first lien position

A lender or creditor in a first lien position has priority in case a debtor defaults and collateral has to be liquefied to settle the debt. For example mortgage lenders are usually in a first lien position; if a borrower defaults on his payments the mortgage lender is the first creditor to receive remuneration from the sale of the property.
Dictionary of Unfamiliar Words by Diagram Group Copyright © 2008 by Diagram Visual Information Limited
References in periodicals archive ?
Wilshire Quinn, based in San Diego, CA, is a portfolio lender which funds short-term real estate loans in first lien position. "Our successful track record is closely linked to our attention to detail.
Financial assistance is limited to aid for mortgage financing with a first lien position. Only the funds specifically designated for this Act shall be used by the authority.
(1) Equitable subordination provides bankruptcy courts with the authority to place the first lien position of a self-enriching secured creditor in an inferior position to that of other secured or unsecured creditors.
(18) In response to Daniel's argument that he intended to occupy a first lien priority, and, thus, be superior to Boley's lien, the court explained that Daniel could not claim an implied agreement that he would occupy a "first lien position" over the Boley mortgage because, if Daniel had intended to do so, he would have included a reference to the Boley mortgage in the recorded satisfaction of mortgage.
While a tax/title review was not completed, Fitch's analysis already assumed that these loans were not in first lien position and Fitch assumes 100% LS for all second liens.
The title company must make certain that the new lender will be in a first lien position, and diligently examine the short sale transaction to make sure all steps are followed.
They said would have to be in first lien position, if it could be done at all.
The results indicated that the subject loans are in first lien position and also identified a small amount of delinquent tax payments.
These risks are partially offset by the first lien position of the pledged PILOTs, the possiblity of mortgage servicer advances to cover potential interruptions in PILOT payments, and solid mall performance.
Apollo Investment's shift into first lien positions is expected to be supported by its exemptive order relief with affiliate MidCap Financial (MidCap), a platform Apollo Management acquired in 2013 and that has been in operation since 2008.
The assets are primarily first lien positions, and there are also 4 REO assets.