> The R-PACE loan principal is not senior to the senior lienholder's position. That's not correct. The loan is on the property not the person taking out the lo

> The R-PACE loan principal is not senior to the senior lienholder's position. That's not correct. The loan is on the property not the person taking out the loan. And it is a senior claim to any other potential claim since its technically a tax obligation. >> Potential resistance by lenders/mortgage-holders whose claims to the property may be subordinated to the unpaid assessment amount should the property go into foreclosure. [0] >> For consumers, PACE type programs have several problems if programs are not properly designed and administrated. Because the financing is designed to stay with the property, eligibility is based primarily on property information rather than income and FICO scores ... A problem with PACE for both residential lenders and consumers is that the tax liens for PACE financing take priority over other lien-holders, and those lien-holders may not be notified or given an opportunity to object [1] The buyer of a property would have to pay that loan down although, like you said, not immediately. That's because the loan is on the property, rather than the individual who took it out. [0] https://www.energy.gov/eere/slsc/property-assessed-clean-energy-programs https://www.energy.gov/eere/slsc/property-assessed-clean-ene... [1] https://en.wikipedia.org/wiki/PACE_financing https://en.wikipedia.org/wiki/PACE_financing