Wilhelm v. Johnston

This appeal arises from a deficiency action brought by the benefieiaries of a deed of trust following a trustee’s foreclosure sale. Based on a determination that the fan- market value of the property sold at the trustee’s sale exceeded the secured debt, the district court denied the beneficiaries’ claim for a deficiency and, in addition, awarded the debtors a judgment for the surplus of the fair market value in excess of the debt. On appeal, the deed of trust beneficiaries assert that the district court committed several errors in denying their claim for a deficiency and in rendering a…