Household Finance Industrial Loan Co. v. Upton

— The issue in this case is whether a property owner’s homestead interest in the excess proceeds from a nonjudicial foreclosure sale pursuant to a first deed of trust, takes priority over the interest of a second deed of trust beneficiary in the proceeds. A deed of trust beneficiary’s interest in real property is superior to an owner’s homestead interest. Interests in real property continue in the proceeds from a trustee’s nonjudicial foreclosure sale pursuant to a deed of trust, in the same order of priority that they attached to the property. Therefore, we hold that the second deed of trust…