FinancingForeclosure_ny_judicialEASY
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.
Answer Options
A
The foreclosing lenderB
The county where the property is locatedC
The former property ownerD
Junior lienholders in order of priorityWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Related Topics & Key Terms
Key Terms:
surplus_fundsdistribution_priorityjunior_liensformer_owner
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