If a property has a first mortgage for $100,000 and property taxes of $4,500 have not been paid, which of the following statements is true?

A tax lien typically takes priority over a mortgage lien in most jurisdictions. When property taxes go unpaid, local governments can place a lien on the property for the amount owed. This lien is considered to have a higher priority than most other liens, including first mortgages. Therefore, if property taxes of $4,500 have not been paid, the tax lien would take precedence and be the first position lien against the property.

In the context of this question, the correct answer reflects the legal principle that tax liens are prioritized to ensure that municipalities can collect their owed taxes. This prioritization serves to encourage property owners to stay current on their tax obligations, as failure to do so can risk the investment in the property, leading to potentially severe consequences like foreclosure.

Additionally, while a mortgage holds significant interest as a debt incurred by the property owner, it does not supersede the government's authority to collect taxes owed on that same property. As a result, if a conflict arises between unpaid property taxes and a mortgage, the tax lien will prevail.