Superior Court of California

County of Los Angeles

CLEAR RECON CORP,

Petitioner,

vs.

ALL CLAIMANTS TO SURPLUS FUND AFTER A TRUSTEE’S SALE OF REAL PROPERTY LOCATED AT 37718 CHRISTENSEN COURT, PALMDALE, CA, 93552,

Respondents.

Case No.: 24STCP01970

DEPARTMENT 45

[TENTATIVE] ORDER

Action Filed: 06/20/24

Trial Date: Not set

Hearing Date: September 16, 2024

Claim for Surplus Funds:

Moving Party: Claimant Elodia Avalos

Responding Party: None

The court considered the moving papers. No opposition has been filed.

The court GRANTS Claimant Elodia Avalos’ Claim for Surplus Funds.

Background

On June 20, 2024, Petitioner Clear Recon Corp filed a petition against Respondent All Claimants to Surplus Fund after a Trustee’s Sale of Real Property Located at 37718 Christensen Court, Palmdale, CA 93552. Petitioner is the trustee under the Deed of Trust which encumbered the real property at 37718 Christensen Court, Palmdale, CA 93552. The Deed of Trust was executed by Juan R. Avalos and Elodia Avalos as trustors on December 18, 2007, and recorded on December 26, 2007. The property was the subject of a trustee's sale that was held on February 6, 2024. (Exh. A.) The total sale price of the property was $389,500.00. As of the date of the Trustee's Sale, there were not junior liens recorded against the Subject Property.

After payment of the amounts required by Civil Code section 2924k(a)(1)–(2), there were surplus proceeds from the trustee's sale available to potential claimants in the total amount of $47,744.57. Within 30 days after the trustee's sale, the trustee sent written notice under Civil Code section 2924j(a) to all persons with a recorded interest in the real property as of the date immediately prior to the trustee's sale who would be entitled to notice. (Exh. 8; Exh. 13.)

After deducting reasonable fees and expenses of the trustee, and the filing fee for this matter, $44,209.89 will be deposited by Petitioner.

On July 26, 2024, Claimant Elodia Avalos filed this claim for the surplus funds. No other claims have been filed.

Legal Standard

When a trustee’s sale is concluded and there are surplus funds, the trustee has 30 days from the execution of the trustee’s deed to send written notice to individuals with a recorded interest in the real property prior to the trustee’s sale. (Civ. Code, § 2924j(a).) This allows those individuals to make a claim to the surplus funds. (Civ. Code, § 2924j(a)(3).) Claimants have 30 days to make a claim. (Civ. Code, §¿2924j(a)(4).) Once claims have been received, the trustee must exercise due diligence to determine the priority of the claims. (Civ. Code, § 2924j(b).) If there is no dispute as to the priority, the trustee pays out the funds within 30 after the conclusion of the notice period. (Civ. Code, § 2924j(b).) 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).)

Discussion

Claimant Elodia Avalos makes a claim of $44,209.89 in surplus funds. Claimant is one of the recorded owners of the Property just prior to the trustee sale. (Avalos Decl., ¶ 3.) Prior to the foreclosure, the other recorded owner, Juan Avalos Sr. passed away on September 15, 2023, in Los Angeles County. (Id., ¶ 4.) After the sale, the trustee paid the creditors to the Property, and a surplus in the amount of $44,209.89 remained. (Id., ¶ 5.) Pursuant to the Trustee Sale Guarantee and surplus endorsement, the Trustee identified no junior liens associated with the subject property.

The court finds that Claimant has sufficiently shown she can obtain the surplus funds. (Civ. Code, § 2924k(a)(3).) The court also finds that no other claims have been filed. Any claims must have been filed 15 days before the hearing. (Civ. Code, § 2924j(d).) Notice was provided by Petitioner.

Based on the above, the court grants Claimant’s claim.

It is so ordered.

Dated: September 16, 2024

_______________________

MEL RED RECANA

Judge of the Superior Court