Answers:
To explain this as simple as possible, when you buy a home and catch a loan for the home, the lender puts a lien on the property. By doing so, the property become collateral for the loan. There can be several liens at one time on a single property.

Lien priority is base on when things seize record. Here is an example situation. We hold a 1st mortgage for $250,000 beside $15,000 surrounded by arrears. This would include adjectives stern payments, belated fees, attorney fees and adjectives the other fees they tack on. This be record 6-20-1999. We own a 2nd for $60,000 beside $5000 surrounded by arrears. Again this includes the support payments and fees. This be record 7-21-1999. If we whip a look at this example, we own a 1st mortgage and we can clearly see it be record first surrounded by 1999. We also enjoy a 2nd who is clearly surrounded by 2nd position.

What is senior and what is junior is base upon when you record the lien. Whoever documentation past another would be contained by "Senior" position and the other would be "Junior". Hence the lingo senior or junior lien holders.

Click on the interconnect for a fuller explanation of lien priorities within times of foreclosure.

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Resource related business question and answer:

Foreclosure FAQ's

A breach exists when the borrower ... the advances may not be senior to the junior lien ... The extinguished junior liens will revive ...

Mortgage Modification and Alteration of Priorities Between Junior and ...

... Between Junior and Senior ... the other hand ... but not if they were ?optional? with the senior lender and the advances were made with knowledge of the existence of junior liens ...