Final answer:
Foreclosure proceedings involve paying off liens and sale expenses from the proceeds of the sale; any remaining funds, known as surplus funds, are given back to the previous homeowner.
Step-by-step explanation:
The subject of this question is related to foreclosure proceedings and the distribution of surplus funds following the sale of a foreclosed property.
In the context of this question, once a property is sold at a foreclosure sale, first, any outstanding liens and sale expenses are paid from the proceeds.
If there are remaining funds after these obligations have been satisfied, such excess, which is often termed surplus funds, is typically returned to the former homeowner, which in this case, would be the borrower who defaulted on their loan obligations leading to the foreclosure.