Legal Question in Credit and Debt Law in California

I had a trustee sale with excess proceeds. I have written a 30 page letter to the law firm that holds the funds. I have proven with an abundance of evidence that I should be awarded the funds. The law firm simply sent a 1 page letter that said, they completed "due diligence" (and showed nothing of what they did) and stated I get 0.00. I am disputing their findings. What are the laws or codes that govern a dispute over excess proceeds (I did file a claim with the law firm to claim the excess proceeds) what more can I do except file a lawsuit to collect them? This happened in California, I need the codes for California. Thank you.


Asked on 3/27/13, 6:55 pm

1 Answer from Attorneys
Charles Perry Law Offices of Charles R. Perry

The rules regarding what happens to surplus funds are found in California Civil Code 2924j. The trustee also has no obligation to state what they did in terms of "due diligence." The order of priority of claims is set forth in Civil Code 2924k.

If the trustee does not properly distribute the funds and you do not receive funds after filing an appropriate claim, then your remedy is to file a lawsuit. It may be wise to ask for an accounting of the funds, so that you and your lawyer can try to see what happened to the funds. The trustee has no obligation to provide that, but may do so in order to try to convince you of the correctness of its actions.

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Answered on 3/28/13, 2:06 am


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