Pacific Loan Management Corp. v. Superior Court

Opinion

BRAUER, J.

—We have consolidated for decision two petitions for writs of mandate or prohibition arising out of the same lawsuit and presenting the issue, apparently of first impression in this state, whether a junior lienor loses his right to the surplus proceeds of an out-of-court foreclosure sale when he himself purchases the property at the sale. We have concluded that he does not, for reasons we shall state. We also have concluded that the trial court should have granted the request for interpleader by the trustee who conducted the foreclosure sale (petitioner Pacific Loan…