Case Number: KS021032 Hearing Date: March 14, 2018 Dept: O

Quality Loan Service Corp. v. All Claimants to Surplus Funds After Trustee’s Sale of Real Property Located at: 1339 Scott Ave Pomona, CA 91767-4157 (KS021032)

FURTHER STATUS HEARING RE: DETERMINATION OF DISTRIBUTION OF SURPLUS FUNDS

TENTATIVE RULING

Surplus proceeds in the amount of $41,657.84 is disbursed to Rosemarie Raygoza and $13,885.95 is disbursed to Jessie Hermosillo.

BACKGROUND

This is a petition filed on 9/14/17 by Quality Loan Service Corp. (“Quality”), a Trustee under a deed of trust recorded on 8/11/06, which encumbered the real property located at 1339 Scott Avenue in Pomona (“subject property”). The subject property was sold at a 5/12/17 non-judicial foreclosure sale. Quality now seeks a determination of claims to surplus proceeds.

On 9/21/17, the court received the surplus fund deposit from the trust sale in the amount of $61,026.93, and an order discharging Quality from further responsibility in this action was signed and filed.

ANALYSIS

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.

Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee’s declaration at the addresses specified therein. Where the amount of the deposit is twenty-five thousand dollars ($25,000) or less, a proceeding pursuant to this section is a limited civil case. The court shall distribute the deposited funds to any and all claimants entitled thereto. (CC 2924j(d).)

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. (CC 2924k(a).)

On 1/9/18, this Court ordered disbursement of $5,483.14 to the State of California Franchise Tax Board, and $55,543.79 was to remain deposited with the Superior Court.

The Court is now in receipt of two claims filed by Jessie Hermosillo and Rosemarie Raygoza, claiming that they were the sole legal and equitable owners of the property prior to the foreclosure sale. The Trustee has declared that Raygoza owns 75% interest in the property and Hermosillo owns 25% interest in the property. (Petition, Attachment 11B.)

With no other claims pending, the court orders the Clerk to disburse $41,657.84 to Rosemarie Raygoza and $13,885.95 to Jessie Hermosillo.