First Lien
Real Estate Taxes. Real estate taxes have priority over all other liens.
Second Lien
The Super Lien of CCIOA. A limited priority or super lien is created pursuant to a part of the Colorado Common Interest Ownership Act (CCIOA) – CRS 38-33.3-316(2)(b)(1). The super lien applies for properties that are subject to a recorded declaration of covenants that includes a covenant to pay assessments. For those communities, CCIOA gives the association a super or limited priority lien over the first deed of trust. The priority is limited to an amount equal to the common expense assessments which would have come due during the six months immediately preceding the institution of a foreclosure by either the association or the holder of the so-called first mortgage.
Third Lien
The “so-called” First Mortgage or First Deed of Trust. This lien is referred to commonly as a first lien. Actually, it is a third lien, behind real estate taxes and also behind the association’s 6 month super or limited priority lien.
Fourth Lien
Association Remaining or Primary Lien. An association lien for assessments and other charges (if for the communities that are subject to CCIOA) is a fourth lien. This lien position is for the balance of assessments due an association after payment of the super or limited priority lien. Association assessments liens in communities subject to CCIOA are typically described as second liens.
Fifth Lien
“So-called” Second Mortgages. A second mortgage lien is a fifth lien (if the community is subject to CCIOA).
Sixth Liens and Beyond
“So-called” Third, Fourth, etc. Mortgages. So-called third, fourth and fifth mortgages have the sixth, seventh and subsequent lien priority, if the community is subject to CCIOA. Transcript of Judgments or other encumbrances against the property fall into this category as well.
