Legal Question in Real Estate Law in California

Re: Foreclosure sale

Yes. It's not illegal.

Re: Foreclosure sale

If they are doing it on your behalf, yes, it is prohibited as collusion. Borrowers have done that before, and have allowed the holder of the first trust deed to foreclose and "wipe out" a second or third deed of trust and/or other judgment liens with the intention of waiting a year or so and then obtaining the property back, and when that happens, any lender's lien, if not completely satisfied, can be "reattached" to the property after suit by the lender or anyone else harmed by such conduct. Also, the cooperating "friend" or family member is often sued as a consoirator.