Question

At a trustee's sale, a property was sold for $160,800. The fees and court costs amounted to $1,600. The property was encumbered with a first deed of trust in the amount of $156,500 and a second deed of trust in the amount of $2,000. Which of the following is correct?

a. There would be a surplus, which would go to the beneficiary
b. There would be a surplus, which would go to the trustor
c. There would be a surplus, which would go to the trustee
d. The beneficiary of the second trust deed could initiate court action for a deficiency against the trustor

Answer 1

Option C, there would be a surplus, which would go to the trustee, is the right answer.

Step-by-step explanation:

The property sold at a price = $160800

The fees and court cost = $1600

First deed amount = $156500

Second deed amount = $2000

Total costing = 1600 + 156500 + 2000 = $160100

Since the selling amount is greater than the cost amount. Thus, there will be surplus to the trustee. So, Option c is correct.