In such case the proceeds of such sale shall be applied as well to the interest, portion, or installment of the principal due as towards the whole or residue of the sum secured by such mortgage, and not due and payable at the time of such sale; and if such residue does not bear interest, then the court may direct the same to be paid with a rebate of the legal interest, for the time during which such residue shall not be due and payable; or the court may direct the balance of the proceeds of such sale, after paying the sum due, with costs, to be put out at interest, for the benefit of the complainant, to be paid to him as the installments or portions of the principal or interest may become due, and the surplus for the benefit of the defendant, his representative, or assigns, to be paid to them on the order of the court.
§ 25-2153.Sale of entire property; proceeds; disposition.
Article 21: Special Proceedings and Actions · Not amended since original codification · Last verified July 22, 2026
In one sentenceThis section explains how proceeds from a whole-property foreclosure sale get applied: first to the interest or installment already due, then toward the balance not yet due, either with a rebate of interest for the remaining time or invested for the complainant until later installments fall due, with any surplus going to the defendant.
Full Text of § 25-2153
Source
R.S.1867, Code § 861, p. 544; R.S.1913, § 8270; C.S.1922, § 9223; C.S.1929, § 20-2155; R.S.1943, § 25-2153.
Plain-English Summary
Section 25-2153 covers the proceeds of the whole-property sale authorized in 25-2152. Those proceeds are applied first to the interest, portion, or installment of the principal already due, and then toward the whole or residue of the sum secured by the mortgage that is not yet due and payable at the time of the sale.
Where that residue does not itself bear interest, the court may direct it to be paid out now with a rebate of the legal interest, covering the time during which the residue would not otherwise have been due and payable. In effect, the borrower’s remaining debt is settled early, discounted by the interest that would have accrued had it stayed on its original schedule.
The court has a second option instead of a rebate. It may direct the balance of the sale proceeds, after paying the sum currently due with costs, to be put out at interest for the benefit of the complainant, paid over as the installments or portions of principal or interest become due under the mortgage’s original terms. Whatever surplus remains beyond that goes for the benefit of the defendant, or the defendant’s representative or assigns, paid to them on order of the court.
Frequently Asked Questions
How are proceeds from a whole-property foreclosure sale applied first?
To the interest, portion, or installment already due, and then toward the residue of the mortgage debt not yet due at the time of sale.
What is the “rebate of legal interest” the court can order under this section?
Where the not-yet-due residue carries no interest of its own, the court may have it paid out early but subtract legal interest for the time it was not yet due — a discount for early payment.
What is the alternative to a rebate under this section?
The court can instead put the remaining balance out at interest for the complainant, paying it over as installments and interest come due under the mortgage’s original schedule.
Who receives any money left over after the debt and future installments are accounted for?
The surplus goes to the defendant, or the defendant’s representative or assigns, paid on order of the court.
Does this section apply to a parcel sale under 25-2150, or only to a whole-property sale?
It applies to the whole-property sale addressed in the immediately preceding section, 25-2152.
Why would a court choose the invested-for-the-complainant method instead of a rebate?
Both options fit repayment of not-yet-due amounts to the mortgage’s original schedule; the statute leaves the choice between them to the court based on the case.
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: distributing whole property sale proceeds nebraskarebate of interest not yet due mortgageinstallments paid from foreclosure sale proceedssurplus after future installments foreclosureapplying foreclosure proceeds to future debt