12 U.S.C. § 3712: Disposition of sale proceeds

first to cover the costs of foreclosure provided for in section 3711 of this title ; then to pay valid tax liens or assessments prior to the mortgage; then to pay any liens recorded prior to the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale; then to service charges and advancements for taxes, assessments, and property insurance premiums; then to the interest; then to the principal balance secured by the mortgage (including expenditures for the necessary protection, preservation, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement); and then to late charges.