Short answer. Generally, the sale terminates once enough of the property has been sold to cover what is currently due plus costs, with further partial sales ordered as more comes due; but if the property cannot be sold in portions without prejudicing the parties, the whole property is sold at once and the entire debt is paid off.
What the law says
If the debt for which the mortgage or encumbrance was held is not all due as provided in the judgment, as soon as a sufficient portion of the property has been sold to pay the total amount and the costs due, the sale shall terminate; and afterwards, as often as more becomes due for principal or interest and other valid charges, the court may, on motion, order more to be sold. But if the property cannot be sold in portions without prejudice to the parties, the whole shall be ordered to be sold in the first instance, and the entire debt and costs shall be paid, if the proceeds of the sale be sufficient therefor, there being a rebate of interest where such rebate is proper.
Rule 68, Section 5 — How sale to proceed in case the debt is not all due. Read the full provision →
Selling only as much as is currently due
When the secured debt is not all due at the time of judgment, the default approach is piecemeal: as soon as enough of the property has been sold to cover the total amount currently due plus costs, the sale terminates rather than continuing to sell more than is needed. This protects the mortgagor from having the entire property liquidated at once merely because only a portion of the underlying debt has actually matured, keeping the sale proportionate to what is presently owed rather than to the full obligation.
Further sales as installments come due
As additional amounts become due later — whether for principal, interest, or other valid charges — the court may, on motion, order that more of the property be sold to cover those newly due amounts, repeating the process as needed rather than requiring one lump sale of everything upfront. This can happen more than once over the life of the mortgage's remaining installments, with a fresh motion and a fresh partial sale each time another tranche of the debt matures and remains unpaid.
When piecemeal selling would prejudice the parties
This installment approach is not mandatory in every case. If the property cannot actually be sold in portions without prejudice to the parties, the rule requires the whole property to be sold in the first instance instead, with the entire debt and costs paid from the proceeds, including an interest rebate where that is proper. This exception typically comes up where the mortgaged property is a single indivisible parcel or improvement that would lose significant value if split into portions for successive sales, making one full sale fairer to both mortgagor and mortgagee than repeated piecemeal ones.
Related provisions
- Rule 68, Section 5 — How sale to proceed in case the debt is not all due
- Rule 68, Section 4 — Disposition of proceeds of sale
- Rule 68, Section 1 — Complaint in action for foreclosure