Escrow & Title
A South Dakota property is foreclosed on for $150,000 in delinquent property taxes. There are also three mortgage liens. After the tax lien is satisfied, the remaining sale proceeds are distributed to:
AThe property owner first
BThe mortgage lienholders in order of their recording priority✓ Correct
CAll creditors equally regardless of priority
DThe state's General Fund
Explanation
After superior liens (like property taxes) are satisfied from foreclosure proceeds, remaining funds are distributed to junior lienholders in their order of priority (recording date), and any excess goes to the former owner.
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