The proceeds of every sale made under a decree in equity shall be applied to the discharge of the debt adjudged by such court to be due, and of the costs awarded, and if there be any surplus, it shall be brought into court for the use of the defendant, or of the persons entitled thereto, subject to the order of the court.
§ 25-2146.Sale; proceeds; how applied.
Article 21: Special Proceedings and Actions · Not amended since original codification · Last verified July 22, 2026
In one sentenceThis section directs the proceeds of a foreclosure sale first to the adjudged debt and awarded costs, then requires any surplus to be brought into court for the defendant or other entitled persons, held subject to the court’s order.
Full Text of § 25-2146
Source
R.S.1867, Code § 854, p. 543; R.S.1913, § 8263; C.S.1922, § 9216; C.S.1929, § 20-2148; R.S.1943, § 25-2146.
Plain-English Summary
Section 25-2146 sets the order of payment once a foreclosure sale closes. Proceeds are applied first to discharge the debt the court has adjudged due, and next to the costs the court has awarded. Only after those two are covered does the question of a surplus even arise.
Whatever remains does not go directly to the defendant at the sale. It is brought into court for the use of the defendant, or of the persons entitled to it, and stays subject to the court’s order. That court custody sets up the further rule in 25-2147, which addresses what happens to a surplus nobody claims within three months.
Frequently Asked Questions
What gets paid first out of foreclosure sale proceeds in Nebraska?
The debt the court adjudged due, followed by the costs the court awarded.
What happens to money left over after the debt and costs are paid?
It is brought into court for the use of the defendant, or of whoever else is entitled to it.
Can the defendant collect a surplus directly from the sheriff at the sale?
No. The surplus goes into court and remains subject to the court’s order rather than being paid out at the sale itself.
Who besides the defendant might be entitled to a surplus?
The section refers broadly to “the persons entitled thereto,” leaving that determination to the court based on the circumstances.
What if the sale does not produce any surplus at all?
Then this rule does not come into play — the proceeds cover the debt and costs and nothing more.
What happens if a surplus sits in court without anyone claiming it?
Section 25-2147 addresses that situation, allowing the court to direct an unclaimed surplus to be put out at interest after three months.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as: how foreclosure sale proceeds are distributed nebraskasurplus after paying mortgage debtexcess funds from foreclosure saleorder of payment foreclosure proceedsleftover money after sheriff sale