Judge: Gary I. Micon, Case: 23CHCP00315, Date: 2024-02-21 Tentative Ruling

Case Number: 23CHCP00315    Hearing Date: February 21, 2024    Dept: F43

Dept. F-43

Date: 2-21-24

Case # 23CHCP00315, Quality Loan Corp. vs. All Claimants to Surplus Funds

Trial Date: N/A

CLAIMS TO DETERMINE DISBURSEMENT OF SURPLUS FUNDS ON DEPOSIT

CLAIMANTS:

California Franchise Tax Board in the amount of $8,757.18

Invinctus Lison, Success Trustee of Roxella Hudson Trust, for all surplus funds

RULING: The Franchise Tax Board shall receive their funds first, followed by Invinctus Lison

SUMMARY OF ACTION

This filing concerns the disbursement of surplus funds from the trustee sale of the property located at 12571 Mercer St., Pacoima, California, 91331-1323. The property was sold at a trustee sale on March 23, 2023. Surplus funds in the amount of $152,238.08 have been deposited with the Court.

The property was originally owned by Roxella Hudson. While she owned the property, a tax lien in the amount of $8,757.18 was placed on the property by the California Franchise Tax Board. In a claim filed on August 28, 2023, the FTB is requesting that $8,757.18 be distributed to it from the surplus funds, pursuant to Revenue and Taxation Code section 19221 and Gov. Code section 7170.

Invinctus Lison, who is the Successor Trustee of the Roxella Hudson Trust, is requesting all of the surplus funds because the Trust owned the property at the time of the sale on March 23, 2023. Lison has made this claim pursuant to Civ. Code § 2924k(a)(4).

The order of distribution of surplus funds is determined by Civ. Code § 2924(a). After the costs of sale are paid and any obligations by deed of trust or mortgage (Civ. Code § 2924(a)(1), (2)), the next to be paid are junior liens or other encumbrances on the property (Civ. Code § 2924(a)(3)), followed by the trustor’s successor in interest (Civ. Code § 2924(a)(4)).

Based on the foregoing, $8,757.18 shall first be paid to the California Franchise Tax Board for its tax lien. The remaining $143,480.90 shall be distributed to Invinctus Lison as the Successor Trustee.

Moving party to give notice.