Final answer:
Excess funds from a foreclosure sale, after paying off the mortgage and any other liens, are typically given to the mortgagor who lost the property. The specific distribution may vary based on local laws.
Step-by-step explanation:
At a foreclosure sale, if there are any excess funds after the sale of the property, these funds are typically distributed to satisfy any junior liens in the order of their priority. If there are no other liens or claims on the property, or if there is still a surplus after paying off all liens, the remaining funds will generally go to the borrower (mortgagor) who lost the property in foreclosure. This payment to the borrower occurs because they held an equity interest in the property.
However, it's important to note that specific laws and practices can vary by jurisdiction, and thus the distribution of excess funds may be subject to local and state laws. Individuals undergoing foreclosure should consult with a legal expert to understand their rights and what they might expect in such circumstances.