[§667-31]  Conveyance of property on payment
of purchase price; distribution of sale proceeds.  (a)  After the purchaser
completes the purchase by paying the full purchase price and the costs for the
purchase, the mortgaged property shall be conveyed to the purchaser by a
conveyance document.  The conveyance document shall be in a recordable form and
shall be signed by the foreclosing mortgagee in the foreclosing mortgagee's
name.  The mortgagor or borrower shall sign the conveyance document on his or
her own behalf.



(b)  From the sale proceeds, after paying all
liens and encumbrances in the order of priority as a matter of law, the
foreclosing mortgagee's attorney's fees and costs, after paying the fees and
costs of the power of sale foreclosure, and after paying the moneys owed to the
foreclosing mortgagee, the balance of the sale proceeds shall be distributed by
the foreclosing mortgagee to junior creditors having valid liens on the
mortgaged property in the order of their priority and not pro rata.  Any
remaining surplus after payment in full of all valid lien creditors shall be
distributed to the mortgagor. 



(c)  Lien creditors prior to the foreclosing
mortgagee shall not be forced to their right of recovery.  However, the
foreclosing mortgagee and any prior lien creditor may agree in writing that the
proceeds from the sale will be distributed by the foreclosing mortgagee to the
prior lien creditor towards the payment of moneys owed to the prior lien
creditor before any moneys are paid to the foreclosing mortgagee. [L 1998, c
122, pt of §1]