Legal Question in Real Estate Law in California

Re lis pendens. I have an ongoing quiet title suit against his other heirs for full ownership of my deceased father's house that he had orally promised to me as his caregiver. Meanwhile though the reverse mortgage lender is planning to sell the house at trustee sale to pay off the defaulted loan. As I understand it, the lis pendens I recorded means that any buyer at the trustee sale is taking title subject to the outcome of my quiet title suit. My question however is, what happens if there are no buyers and the bank takes ownership? Would the lis pendens also give me priority over the bank's later ownership claim, and prevent the bank from selling the house as REO property?


Asked on 8/04/16, 12:22 pm

1 Answer from Attorneys

You appear to have a lot bigger problem than you are aware of. By definition your father's reverse mortgage was recorded before he died. Even if your quiet title claim is upheld, it will only establish title in your name as against the other heirs. It will not cancel the mortgage. Furthermore, it will only establish your title back to the date of your father's death at most, and will be effective of record no farther back than the date you recorded your lis pendens. The recorded deed of trust securing the mortgage, recorded while your father was alive, takes priority over your claim and any other interest that may have attached at any time after the deed of trust was recorded. That means a foreclosure will wipe out EVERYTHING after the date the deed of trust recorded. And THAT means that whether there is a buyer at the trustee's sale, or the bank takes ownership and later sells it as REO, they will own free and clear of your claims. So unless someone figures out a way to clear that reverse mortgage, you and the other heirs will have nothing to quiet title to, and your suit will be dismissed.

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Answered on 8/04/16, 12:39 pm


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