(a)The trustee, or the clerk of the court upon order to the clerk pursuant to subdivision (d) of Section 2924j, shall distribute the proceeds, or a portion of the proceeds, as the case may be, of the trustee’s sale conducted pursuant to Section 2924h in the following order of priority:
(1)To the costs and expenses of exercising the power of sale and of sale, including the payment of the trustee’s fees and attorney’s fees permitted pursuant to subdivision (b) of Section
2924d and subdivision (b) of this section.
(2)To the payment of the obligations secured by the deed of trust or mortgage which is the subject of the trustee’s sale.
(3)To satisfy the outstanding balance of obligations secured by any junior liens or encumbrances in the order of their priority.
(4)To the trustor or the trustor’s successor in interest. In the event the property is sold or transferred to another, to the vested owner of record at the time of the trustee’s sale.
(b)A trustee may charge costs and expenses incurred for such items as mailing and a reasonable fee for services rendered in connection with the distribution of the proceeds from a trustee’s sale, including, but not limited to, the investigation of priority and validity of claims
and the disbursement of funds. If the fee charged for services rendered pursuant to this subdivision does not exceed one hundred dollars ($100), or one hundred twenty-five dollars ($125) where there are obligations specified in paragraph (3) of subdivision (a), the fee is conclusively presumed to be reasonable.
Notes of Decisions
Cal-Western Reconveyance Corp. v. Reed (2007)
calctapp · cites it 5×
“” (Civ. Code, § 2924k, subd. (a)(3).) Cal-Western determined a conflict existed among potential claimants to the surplus proceeds, and on February 25, 2005, filed a “Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds of Trustee’s…”
CTC Real Estate Services v. Lepe (2006)
calctapp
“California Civil Code Section 2924k(a)(4) requires Petitioner to disburse ‘[t]o the trustor or the trustor’s successor in interest’ any funds remaining after payment to junior liens or encumbrances.”
South Bay Building Enterprises, Inc. v. Riviera Lend-Lease, Inc. (1999)
calctapp
“” 6 Civil Code section 2924k, subdivision (a) provides: “(a) The trustee, or the clerk of the court upon order to the clerk pursuant to subdivision (d) of Section 2924], shall distribute the proceeds, or a portion of the proceeds, as the case may be, of the trustee’s sale…”
Smith v. James A. Merrill, Inc. (1998)
calctapp
“6 Discussion When property is sold at a trustee’s sale pursuant to a power of sale contained in a deed of trust, Civil Code section 2924k, subdivision (a) provides for the distribution of the proceeds in the following order of priority: “(1) To the costs and expenses of…”
People v. Gregori CA1/4 (2024)
calctapp · cites it 3×
“11 rather than the nonjudicial foreclosure statute, Civil Code section 2924k; that the court lacked jurisdiction over the surplus; and that the court misapplied section 186.”
Kiet v. Litton Loan Servicing CA4/3 (2013)
calctapp · cites it 2×
“9 Civil Code section 2924k, subdivision (a), requires the foreclosure trustee to distribute the proceeds of the trustee’s sale in the following order of priority: (1) the allowable costs and expenses associated with exercising the power of sale; (2) payment of the obligations…”
Robin v. Crowell (2020)
calctapp
“(Civ. Code, § 2924k.) If there are no excess proceeds, a sold-out junior lienor may bring a personal action against the trustor on the debt.”
Phillis v. County of Humboldt (2020)
calctapp
“The trustee is not attempting to maximize gain, as would be expected of a seller in an open market transaction; he or she is attempting to recoup the amount of a defaulted loan, regardless of the actual value of the security property, and the lender does not keep any surplus…”
— Cal. Civil Code § 2924k(a)(4) — 1 case
CTC Real Estate Services v. Lepe (2006)
calctapp
“California Civil Code Section 2924k(a)(4) requires Petitioner to disburse ‘[t]o the trustor or the trustor’s successor in interest’ any funds remaining after payment to junior liens or encumbrances.”
— Cal. Civil Code § 2924k(b) — 1 case
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