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Business, 25.02.2020 21:28 lolweapon

Smith owned a home subject to a bank loan. After living there a year his cesspool caved in and he contracted to have a new one dug and connected. About that time, he lost his job and couldn't pay his bill. The contractor filed a mechanic's lien. Then the bank foreclosed and sold the property for the amount the borrower owed to them. Which of the following is true:1) The bank secured title subject to the mechanic's lien2) The contractor loses out; the bank's lien was recorded first3) The mechanic's lien has first priority from the proceeds of the sales4) A holder of a mechanic's liens can never recover from a foreclosure

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