§3712 Disposition of Sale Proceeds

Summary

Money from a foreclosure sale must be paid out in a specific order. First it pays the foreclosure costs under section 3711. Next it pays valid tax liens or assessments that come before the mortgage. Then it pays any earlier-recorded liens that the sale notice says must be paid. After that it covers service charges and advances for taxes, assessments, and property insurance. Then it pays interest. Next it pays the mortgage principal, including costs to protect, preserve, or repair the property if the mortgage allows and any interest on those costs. Last it pays late charges.