Re: Title calamity - TD's recorded in wrong order

I witnessed something -- sort of -- similar.

House has 2 liens, with the same bank.

1. 700k
2. 200k

but (2) was recorded first. Property is worth about 900k. Someone bought the second for 200k because it was recorded first.

My thinking is that there was probably some document specifying the position regardless of order of recording. I did not follow up on what happened with this investment. One fellow bidder stated "there is no way that the bank lets him get away with that".

In your case, does the HELOC's trust deed somewhere specify that it shall be junior to the other lien?