Judge: Melvin D. Sandvig, Case: 22CHCP00251, Date: 2022-09-27 Tentative Ruling

Case Number: 22CHCP00251    Hearing Date: September 27, 2022    Dept: F47

Dept. F47

Date: 9/27/22

Case #22CHCP00251

HEARING ON CLAIMS TO DETERMINE DISBURSEMENT OF SURPLUS FUNDS

SUMMARY:

Petitioner Total Lender Solutions, Inc. (Petitioner) was the Trustee under a Deed of Trust  executed by Oril Odell, a single man (Odell).  Said Deed of Trust was secured by real property commonly known as 23122 West Calvello Drive, Valencia, CA 91354 which was sold at a non-judicial foreclosure sale on 2/17/22 as result of a default under the terms of the Deed of Trust.  Said nonjudicial foreclosure sale resulted in the receipt of funds that exceeded the amount of the funds due and owing under the Deed of Trust foreclosed upon and the costs and expenses of such sale. 

After providing notice, Petitioner received two claims for the surplus funds. 

The first claim was from George Packard through US Consumer Law Group and Joseph Rosenblit, Esq.  (Petition, Attachment 11, Ex.A, B, E).  In this claim, Petitioner was provided a copy of a Death Certificate for Odell which indicates he died on 4/2/19.  (Id., Ex.C).  The claim also provided a copy of the Last Will and Testament of Odell dated 8/6/02, partial pages of a Durable Power of Attorney and what appear to be pages of Odell’s trust.  (Id., Ex.D, F). 

The foregoing documents (of which evidence of notarization was not provided) indicate that Packard  was named executor of Odell’s estate via his Last Will and Testament. (Petition, Attachment 11, Ex.D).  Petitioner also received Odell’s incomplete trust agreement from Packard’s attorneys, which allegedly includes page 3 of the trust naming George E. Packard as the recipient of Odell’s entire trust estate and page 12, which names George E. Packard as the successor trustee to the Odell Trust.  No other pages of the Odell trust agreement were provided to Petitioner.  Petitioner indicates that it is informed and believes that the attorney who constructed the Odell trust agreement has been disbarred and is not in the possession of the trust agreement.  Petitioner also notes that the title to the Property was not formally in the Odell Trust at the time of Odell’s death.  (See, Petition, Attachment 5).

Petitioner indicates that while it was discussing the issues of Odell’s trust and Odell’s estate with Packard’s attorney, Petitioner received an assignment of claim and a claim from The Hendricks Group LLC pursuant to an Affidavit of Assignment signed by Packard.  (Petition, Ex.G, H).

Based on the foregoing, Petitioner was unable to reasonably determine how said “surplus funds” should be distributed and therefore sought to deposit said surplus funds with the Clerk of the Court pursuant to California Civil Code Section 2924j(c).

On 7/20/22, the Court signed an order to deposit surplus funds in the amount of $45,573.21 and upon such deposit discharged Petitioner of further responsibility for the disbursement of the surplus funds and excused Petitioner from further participation in the case, including attendance at future hearings. 

On 7/26/22, the Court sent notice to all claimants of the 9/27/22 hearing on claims to determine surplus funds.   

Despite being sent notice of Petitioner’s intent to deposit the surplus funds and notice of the instant hearing on claims to determine disbursement of surplus funds, neither Packard nor The Hendricks Group LLC have filed claims to the surplus funds with the court as required by Civil Code 2924j(d).  Therefore, the surplus funds in the amount of $45,573.21 deposited with the Clerk of the Court on 7/25/22 (receipt number CH-2022-0135856.1) will be transferred from the Trust Account to the County Treasurer.

The Court notes that if either Packard or The Hendricks Group LLC were to file claims for the surplus funds additional evidence regarding either party’s rights to the funds would be necessary (i.e., a complete and properly executed/notarized copy of Odell’s trust and last will and testament and/or an order from the Probate Court determining Packard’s status as Odell’s heir which would entitle him to the surplus funds from the sale of the Property which was not held in the name of the trust and/or authority as to why such order is not required).  Alternatively, if no such evidence available, the claimants would have to provide authority as to why such evidence is not necessary to determine their entitlement to the funds.