12 USC 3762 - Disposition of sale proceeds

U.S Code last checked for updates: Nov 22, 2024

§ 3762.

Disposition of sale proceeds

(a)

Priority payments

Money realized from a foreclosure sale shall be made available for obligation and expenditure in the following order:

(1)

Costs of foreclosure

(2)

Tax liens

(3)

Prior liens

(4)

Service charges and advances

(5)

Interest

(6)

Principal

(7)

Late charges or fees

(b)

Other payments

(1)

Other lienholders and the mortgagor

Any surplus of proceeds from a foreclosure sale, after payment of the items described in subsection (a) shall be paid in the following order:

(A)

First, to holders of liens recorded after the mortgage in the order of priority under Federal law or the law of the State in which the security property is located.

(B)

Second, to the appropriate mortgagor.

(2)

Disputed claims

(Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.)

cite as: 12 USC 3762