National Default Servicing Corporation v. All Claimants to Surplus Funds After Trustee's Sale

(Stanley Mosk Courthouse: Dept. 510) September 1, 2026 DEPARTMENT 510 LAW AND MOTION RULINGS Please notify Department 510 via email at [email protected] and indicate that the parties are submitting on the tentative ruling. Please provide the attorney's name and represented party. Please notify the opposing side via email if submitting on the Court's tentative ruling.

Marcus Group, et al. Application for Tanvir H. Rahman to Appear Pro Hac Vice for Plaintiff Barry Selnick The application to admit attorney Tanvir H. Rahman as counsel pro hac vice for Plaintiff Barry Selnick is granted. The Court will sign and enter the proposed order submitted on July 3, 2025.

Case Number: 26STCP02373 Hearing Date: September 1, 2026 Dept: 510 No. 11 - National Default Servicing Corporation v. All Claimants to Surplus Funds After Trustee's Sale of Real Property Located at: 11637 Ruthelen Street, Los Angeles, CA 90047 Claimant Unifund CCR, LLC's Motion to Disburse Surplus Proceeds from Trustee Sale Claimant Unifund CCR, LLC ("Unifund") moves to disburse surplus proceeds from a trustee sale.

This is a trustee's sale action. Petitioner National Default Servicing Corporation is the trustee of a deed of trust executed by Gary D. Hardwell, secured by the property located at 11637 Ruthelen Street, Los Angeles, CA 90047 (the "Property"). The Property was sold at nonjudicial foreclosure sale on November 24, 2025. The sale proceeds exceeded the amount of funds owed under the deed of trust in the amount of $137,415.72.

Here, Claimant contends that it has a valid claim to the surplus proceeds because it is a lienholder. Unifund acquired this lien through Pride Acquisitions, LLC, who assigned its rights, title and interest in the judgment to it. (Kenosian Decl., P. 3.) Unifund attaches an Abstract of Judgment recorded with the County of Los Angeles. (See Kenosian Decl., Ex. E.) No parties opposed this motion.

This motion is premature. There is no evidence that Petitioner has deposited the surplus proceeds with the clerk. The Court did not sign and enter the proposed order Petitioner submitted on June 25, 2026. "Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee's declaration at the addresses specified therein." (Civ. Code, Sec. 2924j(d).)

Therefore, once the proceeds are deposited, any potential claimants may file a motion to disburse surplus proceeds. The Court will sign the order Petitioner submitted to allow it to deposit the funds. Claimant may refile this motion after the funds are deposited. The Court will then consider it, alongside any other claims to the funds, at the noticed hearing.

Disposition

Claimant Unifund CCR, LLC's motion to disburse surplus proceeds from trustee sale is denied without prejudice.

Case Number: 26STCP02876 Hearing Date: September 1, 2026 Dept: 510 No. 10 - CIS, LLC v. Certain Statutorily Defined Interested Parties Petitioner CIS, LLC's Petition for Approval of Transfer of Structured Settlement Payment Rights Petitioner CIS, LLC petitions for approval of transfer of structured settlement rights by payee Waltay Burchfield.

Insurance Code section 10137 provides: A transfer of structured settlement payment rights is void unless a court reviews and approves the transfer and finds the following conditions are met: (a) The transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents. (b) The transfer complies with the requirements of this article, will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5. Insurance Code section 10139.5, subdivision (b) requires the court to consider 15 enumerated factors in determining whether this transfer should be approved.

After considering all relevant factors and the totality of the circumstances, the Court finds the transfer is fair, reasonable, and in payee Waltay Burchfield's best interest. Burchfield agreed to transfer rights to 196 monthly payments from January 10, 2028 to April 10, 2044 totaling $1,206,968. (Am. Pet., Ex. 2, at p. 1; Burchfield Decl. P. 9.) In exchange, Petitioner will pay Burchfield $500,000 now. (Am. Pet., Ex. 2, at p. 1; Burchfield Decl. P. 10.) This transaction is equivalent to paying 10.49% interest on a loan. (Am. Pet., Ex. 2, at p. 9.) Burchfield states, "I intend to use this money to pay off my condominium unit's mortgage and contribute to financial investments." (Burchfield Decl., P. 11.)

Express Written Findings Insurance Code section 10139.5, subdivision (a) requires the court's order of approval to include six "express written findings." The Court hereby makes the following express written findings as required under Insurance Code section 10139.5: (1) The transfer is in the best interest of payee Burchfield. As discussed above, Burchfield intends to use the money to pay off his mortgage and contribute to financial investments. (Burchfield