Tuesday, February 20, 2018
MTC Financial v. Nationstar Mortgage
Cal.App. 1st Dist. (A150916) 1/22/18
The court held that although defendant's deed of trust securing a $205,080 loan was recorded one recording number after a simultaneously recorded HELOC deed of trust securing a $15,000 loan, defendant's deed of trust was senior to the HELOC deed of trust because the intent of the parties was clear that the deed of trust securing the large loan would be senior. Where two deeds of trust are submitted at the same time for recording, the order in which they are indexed is not determinative of priority. Rather, the intent of the parties determines priority. Accordingly, the court held that defendant was not entitled to any of the surplus proceeds remaining from a foreclosure of the junior HELOC deed of trust and defendant's senior deed of trust remained as a lien on the property.