WHOSE LIEN IS IT ANYWAY: APPELLATE COURT ADDRESSES PRIORITY AS IT RELATES TO FORECLOSED REAL PROPERTY

In the recent appellate decision Woodhaven Dr. 1401 Land Trust v. Citibank, the Dallas Court of Appeals addressed the issue of priority in regard to competing liens on foreclosed real property. Focusing on the facts, the express language of the HOA’s declaration of covenants, conditions and restrictions (“the Declaration”), case law precedent, and the straightforward definition of “mortgage,” found in Black’s Law Dictionary, the court affirmed the holding below. The HOA’s assessment lien was clearly subordinate to Citibank’s first lien and as a result, Woodhaven purchased the property subject to the first lien. Read the case note below.