When two purchase money mortgages are recorded at the same time, what is their priority status?

When two purchase money mortgages are recorded at the same time, they hold equal priority status. This stems from the principle that mortgages are generally treated according to their order of recording. However, when they are recorded simultaneously, a legal concept known as "first in time, first in right" does not apply in the traditional sense, as neither mortgage has a chronological advantage over the other.

In the case of equal priority, both mortgages would share the same position concerning the property they secure. This means that if the property were to be sold in the event of a default, both lenders would have equal claims to the proceeds, and they would likely need to work together during foreclosure proceedings or any distribution of sale proceeds to resolve their interests.

The other options suggest different notions of priority that do not apply when two mortgages are recorded simultaneously. Understanding this framework is essential for navigating priority disputes among mortgage holders, especially in scenarios involving multiple liens or encumbrances on real estate.