Purchase Money Mortgages

State law will dictate priority of purchase money mortgages over judgment liens (Louisiana, for example, does not provide purchase money mortgages priority over judgments.) In most jurisdictions, however, true purchase money mortgages generally take priority over judgment liens correctly filed against the purchasers/borrowers of the insured property. These judgments should be disclosed to the lender (or seller if they are taking back a purchase money mortgage) in the title commitment and listed as a subordinate matter under Schedule B-II of the title policy. If you have any questions regarding the priority of judgment liens over purchase money mortgages for your area, contact your Agents National Title underwriting counsel.