2nd TD - Surplus distribution in CA

Posted by Lindsey on November 20, 2003 at 12:46:44:

When a 2nd TD is foreclosing on a property, is any surplus over the 2nd TD amount applied to the 1st? For example, take a house with a 1st TD for 100,000 and a 2nd for $50,000. The 2nd TD forecloses and at the auction the winning bid is $75,000. Does the surplus $25,000 go to the 1st TD holder? (I am assuming no interest or penalties in my example.)