Judge: Michael Shultz, Case: 23CMCP00126, Date: 2023-08-24 Tentative Ruling

Case Number: 23CMCP00126    Hearing Date: August 24, 2023    Dept: A

23CMCP00126 Quality Loan Service, Corp. v. All Claimants to Surplus Funds

Thursday, August 24, 2023, at 8:30 a.m.

 

[TENTATIVE] ORDER GRANTING MOTION TO DEPOSIT SURPLUS FUNDS PURSUANT TO CIVIL CODE § 2924J AND TO DISCHARGE PETITIONER

 

     

Petitioner commenced this action on July 13, 2023, with a petition to distribute surplus funds of $168,585.17 remaining after paying the foreclosing creditor and deducting fees and expenses.

Petitioner has complied with statutory requirements to send written notice to individuals with a recorded interest within 30 days from the execution of the trustee’s deed. Civ. Code, § 2924j(a). Once claims have been received, the trustee must exercise due diligence to determine the priority of the claims. Civ. Code, § 2924j(b). The trustee received and distributed claims to two junior lien holders, leaving a balance of $52,812.57. Petitioner has twice given notice to the known successors of the real property owner at the time of foreclosure but no claims have been filed.

Before the trustee deposits the funds with the clerk of the court pursuant to subdivision (c), “the trustee shall send written notice by first-class mail, postage prepaid, to all persons described in subdivision (a) informing them that the trustee intends to deposit the funds with the clerk of the court and that a claim for the funds must be filed with the court within 30 days from the date of the notice, providing the address of the court in which the funds were deposited, and a telephone number for obtaining further information.” Civ. Code, § 2924j(d).

Based on the foregoing, the Motion to Deposit Surplus Funds is GRANTED. Upon the trustee’s deposit of the surplus funds that cannot be distributed, the trustee shall be discharged of further responsibility for the disbursement of sale proceeds. (Civ. Code, § 2924j(c).)