A claim made in accordance with the provisions of this article shall be paramount to any other, except that the claim of a holder of a mortgage on the fire-damaged property, where the fire insurance policy at the time of the loss listed the mortgagee as a named insured, in which event the claim of the mortgagee to the proceeds shall be paramount to the municipal lien under this act only to the extent of the amount due and payable to the mortgagee under the mortgage contract.