In a scenario where a property has multiple liens, who typically has the least claim to the proceeds of foreclosure?

In a foreclosure scenario involving multiple liens, the priority of claims to the proceeds is determined by the nature of the liens and when they were recorded. General contractors typically hold a type of lien that may not have the same priority as those filed by laborers or subcontractors who have their own statutory rights under mechanic’s lien laws.

Laborers and subcontractors often have the ability to file a lien for unpaid wages or work completed, which can take precedence over the claims of general contractors in certain situations. Material suppliers, too, may have specific rights under the law to assert claims that could predate or be equally prioritized to those of the general contractors, especially if they have supplied materials that resulted in liens being placed on the property.

Thus, while all parties have valid claims in their own right, the general contractor may stand to receive payment last when it comes to distributing the proceeds from a foreclosure sale. Their position is often subordinate to the claims of those who worked directly on the labor and supply side, making them typically hold the least claim in a scenario where multiple liens are involved.