Judge: Andrew E. Cooper, Case: 23CHCP00276, Date: 2023-11-15 Tentative Ruling

Case Number: 23CHCP00276    Hearing Date: November 15, 2023    Dept: F51

DETERMINE DISBURSEMENT OF SURPLUS FUNDS

Motion filed: 06/30/23

MOVING PARTY: Quality Loan Service Corp.

RESPONDING PARTY: N/A

NOTICE:

RELIEF REQUESTED: Determine Disbursement of Surplus Funds

TENTATIVE RULING: Hearing continued for the Clerk to mail the notice of hearing to the proper address.

BACKGROUND:

Quality Loan Service Corp. is the Trustee under a Deed of Trust executed by Mary C. Sakowski recorded on September 19, 2014. Said Deed of Trust was secured by real property commonly known as 16450 Tribune St., Granada Hills, CA 91344, which was sold at a non-judicial foreclosure sale on January 12, 2023 as result of a default under the terms of the Deed of Trust. The sale yielded funds that exceeded the amount due and owing under the Deed of Trust foreclosed upon. Petitioner (Trustee) filed a petition to deposit surplus funds with the Court and a motion to deposit the funds, pursuant to California Civil Code Section 2924j(c) and be discharged.

On September 7, 2023, the Court entered Petitioner’s Order to Deposit Surplus Funds and ordered Petitioner to deposit surplus funds by September 18, 2023. On September 12, 2023, the Court issued a Notice of Entry of Order to Deposit Surplus Funds in which it discharged Petitioner and stated that Petitioner is not required to make any further appearances. On September 26, 2023, the Clerk filed the Notice of Hearing on Claims to Determine Disbursement of Surplus Funds. However, no claims have been filed with the Court.

ANALYSIS

If the trustee fails to determine priority or there is a dispute, the trustee must deposit the funds with the court pursuant to Civil Code § 2924j(c). The Court “shall consider all claims filed at least 15 days before the date on which the hearing is scheduled with the court.” (Civ. Code, § 2924j(d).) The Court determines priority according to Civil Code § 2924k(a): (1) the costs and expenses incurred in the selling of the property, (2) payment of any obligations secured by the deed or mortgage, (3) to satisfy any outstanding obligations encumbering the property, and (4) to the vested owner at the record time of the trustee’s sale. (Civ. Code, § 2924k(a)(1–4).)

Here, no claims were filed with the Court in advance of this hearing. Pursuant to the September 12, 2023 Notice of Entry of Order, the funds would be escheated to the State of California as unclaimed property.

However, on October 2, 2023, the Court received three separate notices of returned mail regarding the Notice of Hearing, from:

1. County of Los Angeles

2. The Heirs or Devisees of Mary C. Sakowski, Deceased

3. The Estate of Mary C. Sakowski, Deceased

All notices stated that the notices were not deliverable as addressed.

Therefore, this hearing is continued for the Clerk to mail the notice of hearing to the proper address.