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LaSalle Bank loaned $8 million to Cypress Creek 1, LP, to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired

LaSalle Bank loaned $8 million to Cypress Creek 1, LP, to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired contractors to provide concrete work, plumbing, carpentry, and other construction services. Cypress Creek later went bankrupt owing LaSalle $3 million. The contractors recorded mechanic's liens when they were not paid for their work. The property was sold to LaSalle at a sheriff's sale for $1.3 million. The contractors claimed that their mechanic's liens should be satisfied out of the $1.3 million before any funds were distributed to LaSalle for its mortgage. The trial court distributed the $1.3 million primarily to LaSalle, with only a small fraction going to the contractors. Do the liens come before the mortgage in priority of payment? Discuss thoroughly.

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