After a long court battle, a Judge ordered Martha to pay $100,000 in damages to Joe. In order to secure this debt, a lien was placed on Marthas house. The Judge issued the Order on July 1st, but the courts lazy clerk failed to record the lien until October 1st.

1. (a) If Martha took out a second mortgage on her house on August 1st, which of these two liens is likely to have priority? Briefly explain your answer.

2. (b) The court could have also placed a lien on Marthas personal property, but it did not. What is the likely reason why the court chose not to place a lien on Marthas personal property?

3. (c) On September 1st, Martha sold her house. Somehow, she was able to hide the fact that Joe had a lien on her property. Immediately after the sale, Martha moves to Europe without paying a single penny to Sam. What happened to Sams lien? Briefly explain your answer.