Can any bank record a substitution of trustee of the deed of trust on ANY defaulted loan, then foreclose?
2 Answers from Attorneys
Yes, yes they sure can. The whole thing is governed by Civil Code section 2934a. (Note that I wrote 2934a and not 2934(a) or 2934 subdivision (a).)
Well, not "any bank" - under 2934a, it has to be a bank meeting one of the criteria listed therein at 2934a(a)(1)(A) or (B). However, a bank can meet one of these criteria without necessarily being a bank you've dealt with or whose name you recognize!