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Does a Maryland Circuit Court judgment take priority over a bank line of credit?

Does a Maryland Circuit Court judgment take priority over a bank line of credit?

Full question:

Does a judgement filed by the Circuit Court of Maryland take priority over a line of credit given to the owner of property by a bank? Situation: Home has no mortgage is assessed a $130,000 by county. Has a line of credit for $100,000 which has been used to limit. Therefore only $30,000 equity remains. I need to use property as collateral for a bond of $75,000. If the Circuit Court judgement is priority over the line of credit then it can be used as collateral if it does not take priority then property cannot be used. I am trying to get my partner out of jail if the priority is there please quote or email me the basis for this priority.

Category: Debts and Credit
Date: 04/07/2025
State: Maryland

Answer:

Priority of liens is usually determined by the date they are recorded. Generally, a lender's lien takes priority over any later filed liens, which are considered junior liens. Junior creditors can only collect from the remaining proceeds after the primary mortgage holder is paid. If the property is sold in foreclosure and there are no proceeds left for junior creditors, they may pursue other assets of the debtor.

The answer to your situation depends on the filing dates of the court judgment and the line of credit. If the judgment is related to property taxes or government debts, it may take priority even if filed after the lender's lien. To confirm filing dates, you can contact the land recorder's office in the county where the property is located.

Relevant Maryland statutes include:

Real Property § 7-102: This statute discusses the priority of mortgages and deeds of trust, stating that any future advances have the same priority as the original mortgage date.
Tax-Property § 14-805: This statute establishes that a first lien for property taxes attaches to real property from the date the tax is due.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How is priority determined in cases where more than one judgment lien is filed against a property in Florida?

In Florida, the priority of judgment liens is generally determined by the date they are recorded. The first lien recorded typically has priority over later liens. However, if a lien is related to specific debts, such as property taxes, it may take precedence regardless of the recording date. To confirm the priority of liens, you can check with the county clerk's office where the property is located. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How does a judgment work in Maryland?

In Maryland, a judgment is a court's decision that establishes a debt owed by one party to another. Once a judgment is recorded, it creates a lien against the debtor's property. This means that if the property is sold, the judgment creditor can claim the amount owed from the sale proceeds. The priority of the judgment lien depends on when it was recorded compared to other liens. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What is a judgment creditor order of priority?

A judgment creditor's order of priority refers to the sequence in which creditors are paid from the proceeds of a debtor's assets. Generally, secured creditors are paid first, followed by unsecured creditors. The priority can depend on the recording date of the liens and any specific legal provisions related to the debts. In Maryland, judgment liens typically follow this order unless specific statutes dictate otherwise. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Does a judgment lien take priority over a mortgage?

In Maryland, a judgment lien usually takes priority over a mortgage if it is recorded before the mortgage. However, if the mortgage was recorded first, it generally retains priority. Certain types of liens, such as those for property taxes, may have priority regardless of when they were recorded. It's essential to check the recording dates to determine the exact priority of liens. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What is the order of priority for creditors?

The order of priority for creditors typically starts with secured creditors, who have collateral backing their loans. Next are unsecured creditors, such as credit card companies and medical providers. Within these categories, the priority can be influenced by the recording dates of liens or specific legal provisions. In Maryland, judgment liens are treated as unsecured unless they are attached to specific property. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Who is the first priority creditor?

The first priority creditor is usually the secured creditor who holds the first lien on a debtor's property. This means they have the right to be paid first from the proceeds of the sale of that property. If multiple secured creditors exist, the one with the earliest recorded lien typically has priority. In Maryland, this principle applies unless specific laws dictate otherwise. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*