When there's not enough equity to pay everyone, lien priority determines who gets paid and who gets nothing. The first creditor to record their abstract beats all later creditors - unless they didn't.
Under CCP § 697.390, judgment liens have priority based on recording date. The creditor who records their abstract of judgment first gets paid first from property sale proceeds. This is the "first in time, first in right" rule.
Why does this matter? Because most judgment debtors don't have unlimited assets. When the property is sold, there's often not enough money to pay everyone. Senior liens get paid in full; junior liens get whatever's left - often nothing.
Debtor's house sells for $600,000.
First mortgage: $400,000 (recorded 2015) - Paid in full
Creditor A judgment lien: $50,000 (recorded March 2023) - Paid in full
Creditor B judgment lien: $75,000 (recorded July 2023) - Paid in full
Creditor C judgment lien: $100,000 (recorded 2024) - Gets remaining $75,000
Creditor D judgment lien: $80,000 (recorded 2025) - Gets $0
Every day you wait to record is a day another creditor might beat you. Record your abstract immediately after getting your judgment certified. Don't wait.
Not all liens are equal. Some liens have priority over judgment liens regardless of recording date. Here's the typical order when property sells:
Always first. County tax liens beat everyone, including first mortgages. Non-negotiable.
Mechanics' liens relate back to when work began, potentially jumping over later-recorded mortgages and judgment liens.
The mortgage used to buy the property. Usually the largest lien and highest priority among consensual liens.
Second mortgages, HELOCs, refinances. Priority by recording date among themselves.
Your abstract of judgment. Priority determined by when you recorded - not when you got the judgment.
The debtor's protected equity ($313K-$626K in 2026). Comes off the top of what's available to judgment creditors.
The homestead exemption protects the debtor's equity from judgment liens, but doesn't affect voluntary liens (mortgages). If the debtor has $500,000 equity after paying the mortgage, and claims a $400,000 homestead exemption, only $100,000 is available for judgment creditors - split by priority.
A mortgage or deed of trust recorded before your judgment lien has priority. But watch out for these scenarios:
Under CCP § 697.390(b), when multiple judgment liens are recorded on the same day, they have equal priority and share pro rata. However, mortgages recorded the same day as a judgment lien typically have priority because of their minute-stamp or transaction number.
County recorders often stamp documents with the exact time of recording. If there's a priority dispute about same-day recordings, get certified copies showing the minute stamps. The earlier timestamp wins.
Priority isn't always permanent. Here's what can cause a junior lien to move up - or a senior lien to move down:
January 2024: Bank records $300,000 mortgage (Position 1)
March 2024: You record $50,000 judgment lien (Position 2)
June 2024: Creditor B records $40,000 judgment lien (Position 3)
September 2025: Debtor refinances - pays off Bank mortgage
New order: You are now Position 1, Creditor B is Position 2. When property sells, you get paid first among judgment creditors.
Bankruptcy adds complexity to lien priority. Your judgment lien may be:
Once a debtor files bankruptcy, the automatic stay prevents all collection activity. Don't record new abstracts or take any enforcement action without bankruptcy court permission. Violations can result in sanctions and damages.
Priority is determined separately for each county. Recording in multiple counties protects you against property in those counties, but your priority in each county depends on when you recorded there relative to other creditors. A competitor could beat you in County A but lose to you in County B.
An amended abstract (to correct errors or update amounts with accrued interest/costs) typically relates back to your original recording date for priority purposes. However, if the amendment substantially increases the judgment amount beyond interest and costs, the increase may take a new priority date. Consult an attorney for significant amendments.
Yes, through a subordination agreement. A senior creditor can agree to subordinate their lien to yours, effectively swapping positions. This is rare with judgment creditors but sometimes happens when the debtor needs your cooperation for a refinance. Get subordination agreements in writing and recorded.
If your judgment lien expires because you failed to renew timely (must be done between 5-10 years after entry), you lose your priority position entirely. You can re-record after renewing, but you go to the back of the line with a new priority date. Creditors who recorded after you originally but before your re-recording will now be senior to you. Set calendar reminders for renewal.
Order a title search or preliminary title report from a title company. They'll show all recorded liens in order of priority: mortgages, judgment liens, tax liens, mechanics' liens, etc. Cost is typically $75-200. This tells you exactly where you stand and how much equity is available above you.
Depends on the numbers. Calculate: property value minus senior liens minus homestead exemption = equity available to you. If that number exceeds zero, it's worth maintaining your lien. Even if you're underwater now, property values rise, mortgages get paid down, and senior liens expire. A junior lien today may become a senior lien in 5 years.
I handle California judgment lien strategy including priority disputes, title searches, and enforcement timing. Know exactly where you stand before making collection decisions.