How are the proceeds from a foreclosure sale distributed?
Funds are usually distributed in this order: 1. Almost always, any outstanding real estate taxes are paid first. 2. Next, proceeds will be used to pay off mortgages in their order of precedence (first mortgage, second mortgage, etc.). 3. Then, any other lien holders and other secured creditors who have valid claims against the property are paid. 4. Last, if there’s any money left from the above, it is paid to the former owner.
