Question

In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?

Answer 1

A trustee sale takes place because a borrower failed to perform payments.

Once the trustee sale is carried out, the first company or individual getting paid is the holder of the first trust deed. Then the holder of the second will get paid and the foreclosure costs will be covered. Finally the trustor will receive the remaining cash surplus.