The proceeds of each such sale shall be brought into court, there to be applied if the sale is ratified, in accordance with the provisions of a supplemental judgment then to be rendered in the cause, specifying the parties who are entitled to the same and the amount to which each is entitled. If any part of the debt or obligation secured by the mortgage or lien foreclosed or by any subsequent mortgage or lien was not payable at the date of the judgment of foreclosure, it shall nevertheless be paid as far as may be out of the proceeds of the sale as if due and payable, with rebate of interest where the debt was payable without interest, provided, if the plaintiff is the purchaser at any such sale, he shall be required to bring into court only so much of the proceeds as exceed the amount due upon his judgment debt, interest and costs. In the case of a foreclosure by market sale, the person appointed to make the sale shall bring the proceeds of the market sale into court.
(1949 Rev., S. 7208; P.A. 79-602, S. 83; P.A. 14-84, S. 10; 14-217, S. 207.)
History: P.A. 79-602 made minor changes in wording but made no substantive changes; P.A. 14-84 added provision re proceeds of the market sale in foreclosure by market sale; P.A. 14-217 changed effective date of P.A. 14-84, S. 10, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
Procedure. 98 C. 154. Rights of parties to fund realized from sale should be determined by a supplementary judgment. 103 C. 744. Cited. 120 C. 671. The decree of foreclosure by sale should not adjudicate the rights of the parties to the funds realized; those rights should be determined by way of supplemental judgment. 142 C. 200. On sale of four mortgaged parcels as one tract, after satisfying first mortgage debt, proceeds remaining were apportioned between second mortgagees according to the respective values of their securities and not according to a rule of priority in time. 153 C. 267. Cited. 166 C. 195; 195 C. 418; 219 C. 620; 235 C. 741.
Cited. 27 CA 549. Court's order with respect to funds from foreclosure sale was not a garnishment of funds held by court clerk and court had authority to order the clerk to hold rather than to distribute the funds pending the outcome of appeal. 87 CA 321.
Claim of mechanic's lienor which has not expired at time of mortgage sale is transferred to proceeds of sale. 20 CS 460.
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