After a foreclosure sale in New York, there are surplus funds remaining after paying off the foreclosing lender. Who is entitled to receive these surplus funds first?
Correct Answer
D) Junior lienholders in order of priority
Surplus funds from a New York foreclosure sale are distributed first to junior lienholders in order of their priority (second mortgage holders, judgment creditors, etc.), and then any remaining funds go to the former property owner.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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