republic-os/legal/us/code/title-12/chapter-38a/section-3762.md

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LegalText	12 U.S.C. § 3762	Disposition of sale proceeds	us	united_states_code	code_section	12	BANKS AND BANKING	38A	SINGLE FAMILY MORTGAGE FORECLOSURE	3762	12 U.S.C. § 3762	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip	/us/usc/t12/s3762	data/legal/raw/us/code/title-12/usc12.xml	3d172057470025e84134d1d4cc78bf75930485b4872cccef6ca3f756f52cd230	e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa	3dd753518f04c2ecac98ed18759d486fa285b159016431c2b33f2fe9e8865214	2026-07-04	official	legal us-code

12 U.S.C. § 3762 - Disposition of sale proceeds

Text

(a) Priority payments Money realized from a foreclosure sale shall be made available for obligation and expenditure in the following order:

(1) Costs of foreclosure To cover the costs of the foreclosure proceeding described in section 3761 of this title.

(2) Tax liens To pay valid tax liens or assessments if required by the notice of default and foreclosure sale.

(3) Prior liens To pay any liens recorded before the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale.

(4) Service charges and advances To pay service charges and advances for taxes, assessments, and property insurance premiums.

(5) Interest To pay any outstanding interest.

(6) Principal To pay the principal outstanding balance secured by the mortgage (including expenditures for the necessary protection, preservation, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement).

(7) Late charges or fees To pay any late charges or fees.

(b) Other payments (1) Other lienholders and the mortgagor Any surplus of proceeds from a foreclosure sale, after payment of the items described in subsection (a) shall be paid in the following order:

(A) First, to holders of liens recorded after the mortgage in the order of priority under Federal law or the law of the State in which the security property is located.

(B) Second, to the appropriate mortgagor.

(2) Disputed claims If the person to whom such surplus is to be paid cannot be located, or if the surplus available is insufficient to pay all claimants and the claimants cannot agree on the allocation of the surplus, or if any person claiming an interest in the mortgage proceeds does not agree that some or all of the sale proceeds should be paid to a claimant as provided in this section, that part of the sale proceeds in question may be deposited by the foreclosure commissioner with an appropriate official or court authorized under law to receive disputed funds in such circumstances. If a procedure for the deposit of disputed funds is not available, and the foreclosure commissioner files a bill of interpleader or is sued as a stakeholder to determine entitlement to such funds, the foreclosure commissioner’s necessary costs incurred in taking or defending such action shall be deductible from the disputed funds.

(Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.)

Notes

Editorial Notes

Codification Section is based on section 813 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327.