Banis

BACKGROUND

Between 2004 and 2011, plaintiffs obtained multiple loans and loan modifications secured by the Orinda property. As of March 2011, the Orinda property was encumbered by two deeds of trust. The senior loan (the World Savings loan) was approximately $1,428,000. Magnate’s loan of approximately $875,000 was in second position. Magnate foreclosed in 2011 and acquired the property at a trustee’s sale on March 25, 2011, subject to the existing World Savings loan, with a bid of $505,088.93. Plaintiffs sued Magnate, Standard, and various other defendants. After all but one of their causes of action were dismissed with prejudice on demurrer, Magnate and Standard moved for summary judgment on plaintiffs’ remaining cause of action for failure to distribute proceeds of the trustee’s sale pursuant to Civil Code section 2924k. The trial court granted summary judgment for the defendants. It explained: “Section 2924k sets the priority for distributing the ‘proceeds’ of a foreclosure sale. In the case at bar, there were no proceeds to distribute, because there was no cash bid exceeding defendant Magnate Fund’s credit bid. . . . [¶] Defendants’ opening evidence adequately establishes…