Trustees are responsible for the foreclosure sale of a property in California. The trustee is also responsible for the distribution of the surplus funds. There is a legal document known as The Trustee’s Deed Upon Sale, which is recorded with the County Recorder. These documents record the date of the sale, they also identify who purchased the property and the amount they paid for the foreclosed property. This document also itemizes all outstanding liens that were paid in full by the purchase price. If there is funds left over, they are due to the past owner that was foreclosed upon. After recording the Trustee’s Deed Upon Sale, the law states that the trustee must by statute notify the past homeowner who was foreclosed upon of their rights to claim the surplus funds. If the past homeowner complies with the trustee’s requirements, the trustee will disburse the surplus funds to them.
If there is more than one claimant for the surplus funds. The Trustee will have to hold te surplus fund until there is clarity of who these funds legally belong to. I many cases it must be interplead by an attorney of a claimant.