Barrett Daffin Frappier Treder & Weiss v. Sanchez CA2/6

DISCUSSION

The nonjudicial foreclosure statutes provide “a quick, inexpensive and efficient remedy” against borrowers who default

We refer to the Civil Code unless noted otherwise.

2In a later order, the trial court allocated the interest that accrued on these amounts while deposited with the court.

2 on loans secured by real property. (Moeller v. Lien (1994) 25 Cal.App.4th 822, 830; § 2924 et seq.) The proceedings trigger a trustee’s sale to satisfy the obligation. (§ 2924h; South Bay Building Enterprises, Inc. v. Riviera Lend-Lease, Inc. (1999) 72 Cal.App.4th 1111, 1120-1121.) Following the sale, “subordinate liens against the foreclosed property attach to the surplus proceeds in order of their priority. [Citation.]” (Caito v. United California Bank (1978) 20 Cal.3d 694, 701.) The trustee distributes the surplus directly to secured creditors unless there is a dispute over the priority of payment. (§ 2924j, subd. (b).) Where such a dispute exists, as here, the trustee may file an interpleader action and deposit the surplus funds with the court. (Id., subd. (e).) The court then determines the priority of creditor payments at trial pursuant to Civil Code section 2924k.3…