A Nevada property is sold at a trustee's sale for $480,000. The costs of the trustee's sale were $6,000. The first deed of trust had an outstanding balance of $350,000. A second deed of trust had an outstanding balance of $90,000. After paying all lienholders in order of priority, how much, if any, will the borrower (former owner) receive from the sale proceeds?
Correct Answer
B) $34,000 — the amount remaining after paying all costs and lienholders
Step 1: Start with total sale proceeds: $480,000. Step 2: Subtract trustee's sale costs: $480,000 − $6,000 = $474,000 remaining. Step 3: Pay first deed of trust in full: $474,000 − $350,000 = $124,000 remaining. Step 4: Pay second deed of trust in full: $124,000 − $90,000 = $34,000 remaining. Step 5: The remaining $34,000 goes to the borrower (former owner) because all lienholders have been paid in full. In Nevada, any surplus after satisfying all liens and costs is returned to the former owner.
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