What are the first items that must be paid from the proceeds of a foreclosure sale?

In a foreclosure sale, the process typically dictates the order in which proceeds are distributed. The first items that must be paid from the proceeds are the costs associated with the foreclosure itself. These costs often include things like attorney fees, auctioneer fees, and other expenses necessary to complete the foreclosure process.

This prioritization ensures that the lender or other parties involved in the foreclosure are compensated for the expenses incurred in executing the sale before any other debts related to the property are addressed. Once these costs are settled, then subsequent claims, such as interest on loans, taxes owed, or homeowner association fees, can be paid from the remaining proceeds.

Understanding this priority is crucial for navigating real estate transactions and the implications of foreclosure, as it highlights the importance of recognizing and managing costs associated with property loss.