Escrow & Title (alternative)

When a Maryland property is sold through foreclosure and the proceeds exceed the mortgage debt, the surplus goes to:

AThe foreclosing lender
BJunior lienholders and ultimately the former owner if any remains after all liens are satisfied✓ Correct
CThe Maryland state government
DThe title insurance company (alternative)

Explanation

In a Maryland foreclosure sale, proceeds first pay the foreclosing lender's debt, then any junior lienholders in priority order. Any remaining surplus after all liens and costs are paid belongs to the former property owner.

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