A lender, as security for a loan, has the right to force the sale of the property to recover the amount owed. If more than the loan and costs amount is recovered, what happens to the excess?

In a situation where a lender conducts a foreclosure sale to recover amounts owed on a loan, if the sale results in proceeds that exceed the total owed (which typically includes the loan amount plus additional costs like attorney fees or property maintenance), the excess funds are generally returned to the borrower. This concept is rooted in the principle that the borrower retains ownership of the property until the loan obligation is fulfilled.

Thus, once the lender satisfies the debt through the sale, they have no further claim to any remaining funds generated from that sale beyond what is necessary to cover the outstanding loan balance and associated costs. The law mandates that any excess proceeds must be returned to the borrower, allowing them to benefit from the increased value of the property, should the sale exceed the amount owed. This mechanism protects the borrower's rights and ensures they are not unduly penalized by a foreclosure sale.

The other options do not align with this principle, as they inaccurately imply that the lender, government, or an unrelated entity has a claim to those surplus funds post-sale.