Which type of mortgage is specifically mentioned to receive priority over other recorded mortgages?

A purchase money mortgage is specifically designed to allow a borrower to finance the acquisition of a property through the mortgage itself. This type of mortgage is given priority over other recorded mortgages that the seller of the property may have because it directly relates to the purchase transaction.

When a buyer secures financing through a purchase money mortgage, that mortgage often gets first lien status, meaning it must be paid off before any other encumbrances or mortgages on the property if foreclosure occurs. This is crucial for lenders because it mitigates their risk in financing property acquisition, as they know their loan is tied directly to the property that secures it.

The significance of a purchase money mortgage's priority is rooted in its function: since it facilitates the direct purchase of the property itself, it is considered to be an integral part of the transaction, thereby granting it that critical priority over other mortgages that might be incurred later. This priority applies unless other agreements or legal findings dictate otherwise, such as in the case of correctly executed subordination agreements or specific arrangements regarding junior mortgages.

In contrast, other types of mortgages such as subordination mortgages, equitable mortgages, and junior mortgages do not inherently come with priority and often depend on negotiations or existing lien status. Thus, the purchase money mortgage