Reed

SUMMARY

The trial court ordered the distribution of surplus proceeds from a trustee’s sale of residential property to satisfy the debtor’s obligations for child and spousal support arrearages, a community property equalization payment to the debtor’s former wife, attorney fees ordered in a dissolution proceeding, and a loan and attorney fees owed to the debtor’s former attorney in this lawsuit. We conclude that:

FACTUAL AND PROCEDURAL BACKGROUND

This case involves the appropriate disposition of the surplus proceeds of a trustee’s sale of real property. Cal-Western Reconveyance Corporation was the trustee under a deed of trust on the real property executed by trustor Barry Reed. After the trustee’s sale on May 25, 2004, and payment of costs and the obligations secured by the deed of trust, surplus proceeds were available to satisfy “obligations secured by any junior liens or encumbrances in the order of their priority.” (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…