Legal Question in Real Estate Law in California

Re: foreclosure

If there is any money left after the taxes and loan are paid he gets that.

Re: foreclosure

The amount of the successful bid at a foreclosure auction is generally applied in the following sequence:

(1) First, tax liens are paid in full.

(2) Then, the most senior loan (or mechanic's lien) is paid in full;

(3) If funds remain, they are applied to less-senior liens (second mortgages, for example) in order of priority. Payoff priority is usually determined by the date of recording, except mechanic's liens are accorded priority by date work started. Each prior lien is paid in full (including costs) before any funds are applied to any junior creditor.

(4) Whatever is left over goes to the debtor (now-former owner).

(5) The above can be modified in special circumstances such as bankruptcy, subordination agreements, etc.