Disposition of proceeds of sale

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The trustee or mortgagee shall apply the proceeds of the sale as follows:

  1. (1) To the expenses of the sale, including compensation of the trustee or mortgagee and a reasonable fee by the attorney;

  2. (2) To the indebtedness owed;

  3. (3) To all persons having recorded liens subsequent to the interest of the trustee or mortgagee as their interests may appear in the order of the priority; and

  4. (4) The surplus, if any, to the grantor of the trust deed or to the successor in interest of the grantor entitled to the surplus.


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