Char: Previous answers indicate that the way it works is that the sheriff turns all the proceeds over to the entity that commenced the foreclosure. They, in turn, disburse as per the outstanding liens. The residuum, if any, is then is due the homeowner. While I can't verify this, never having seen a specific outcome where there was a residual amount, I'd add just one thing:
That is this, whether the amount is large or, more likely, small, it may be a great deal to the dispossessed homeowner. While they may still be in place at the property, (eviction comes after the transfer of ownership, since you can't evict an owner from his own property, except if there is some hazard,) some people do move away early and if that is your personal circumstance or that of someone you know, be sure to let the party with the funds to disburse know where to find you. While, in the case where the proceeds do not cover the loan, the lender has a right to come after the borrower, in most cases they do not. The same cannot be said in short sales, where, I hear of cases that, for some odd reason, the lender demands that the homeowner agree to pay the remaining balance. I say odd reason, because it would appear that the lender already knows that the borrower is in financial difficulty over their head and hands and has little prospect of being able to carry this debt and simultaneously restart their life.
That 's just an opinion of mine.
My best wishes to you and to anyone in this position. I ain't fun, McGee.... more