In lien-hypothesis states, mortgages and deeds of trust have been upgraded with the goal that they currently force a prepossession lien on the title to the mortgaged property, while the mortgagor still holds both lawful and fair title. Liens that have appended to the title before the mortgage lien are said to be higher ranking than, or preceding, the mortgage lien. Those joining a while later are said to be junior or subordinate. In title-hypothesis expresses, a mortgage continues to be a movement of lawful title to anchor an obligation, while the mortgagor still holds impartial title.
In the event that a property's title has different mortgage liens and the loan anchored by a first mortgage is satisfied, the second mortgage lien will climb in need and turn into the new first mortgage lien on the title. The reason for this need is to build up the request in which lien holders are qualified for abandon their liens so as to recoup their obligations.
