Inverse-Order-of-Alienation Doctrine Law and Legal Definition

Inverse order of alienation doctrine is a principle that when collecting on mortgagor lien on a property sold off in successive parcels, it should be first collected from the parcel still held by the original owner, then proceed against the other parcels in the inverse order in which they were sold until the mortgage is fully satisfied. This rule applies when a mortgaged tract of land is sold off or conveyed in parcels and the various grantees pay full value to the mortgagor without getting a release from the mortgagee. Thereafter, if the mortgagor defaults and the mortgagee foreclose, this inverse order of alienation will apply. The rationale behind the rule is that the buyer of the first parcel sold acquired the most equity, and likewise down the line until the land still held by the mortgagor has the least.

Inverse order of alienation doctrine is also known as rule of marshaling liens.