What is a First Mortgage?

The first mortgage is also called the priority mortgage, and the creditor's right to deal with the collateral has priority. When the debtor's funds cannot pay off the debts owed, the collateral should be processed or compensated. At this time, the creditor who enjoys the first mortgage right has the right to dispose of the collateral first; after the debtor has paid off the debt of the first mortgagee, The collateral can only be used for other purposes. It arises from the issuance of "first mortgage bonds" and "primary mortgage corporate bonds" in the United States. ^[1]