What does "priority" refer to in the context of liens?

In the context of liens, "priority" specifically refers to the order in which different liens are satisfied during a foreclosure process. When a property is foreclosed, the proceeds from the sale of the property are distributed to lienholders based on the established priority of the liens. First in line (or highest priority) gets paid first, while subsequent liens are paid only after the higher-priority ones have been addressed. This hierarchy is crucial because it determines who receives payment from the liquidation of the asset and can significantly affect the financial outcome for lien holders.

The total amount owed on a loan, the process of lien creation, and the rights granted to the borrower are related to liens but do not define the concept of priority itself. Thus, the correct interpretation of "priority" involves the sequence in which claims against the property are resolved.