Legal Question in Real Estate Law in California

First, our firm does not handle this sort of litigation, and geographically, you need someone in Northern California to work with you on this matter. I can, however, tell you that you face a monstrous uphill battle. Prior to foreclosure, you have much better odds of avoiding foreclosure. Post-foreclosure, getting a court to set aside the foreclosure sale and restoring you to ownership is extremely tough. You have the advantage that the bank purchased the property - if an unrelated 3rd party had purchased it, setting aside the sale is virtually impossible.

In terms of not receiving notice, are you saying that no Notice of Default or Notice of Trustee's Sale was ever mailed, delivered or recorded against your property? If those notices were properly given, then even if they had continued the foreclosure sale from its original date while you were in modification, there is no requirement for further notice. At the sale, the bank can bid whatever it wants, up to what it is owed, so the issue of it paying $2,000 less than what you owed is irrelevant.

As for surrender of the property, you have virtually no time. As the owner of the property living in it, the bank need only give you a three day notice to vacate, at which time they can file an unlawful detainer lawsuit. You need to contact an attorney in your area before that happens, as the only way to stop the eviction will be an order from the Superior Court (or Bankruptcy Court) staying the eviction. If judges in your area are anything like ours here in Orange County, they WILL NOT listen to possible defects in the foreclosure as a defense to being evicted. If the bank conducted a foreclosure sale, and gave you the property notice after foreclosure to get out, you will be evicted. Good luck, but I am afraid this is something you need to go retain an attorney to deal with immediately.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

I generally agree with Mr. Gibbs, except for a couple of technicalities. First, there is a difference between a "full credit bid" where the bank bids what it is owed, and a smaller bid; the latter leaves a deficiency and hence leaves the door open for the bank to sue the borrower for some related issue such as loan-application fraud, waste, or who-knows-what. Unlikely to happen, but that probably explains why there was a slight under-bid; it's a matter of policy. Also, the bank can bid as high as it wants IF it is competing against another bidder and for some reason wants to own the property. This is also unlikely to happen.

The second area of slight disagreement is in how long you'll have before being evicted. Although you may get a three-day notice very soon, or may have it by now, that doesn't always happen immediately.

Finally, a couple of comments about your apparent lack of notification. Are you living at the address of the foreclosed property? Have you had any problems with mail deliveries? Do you get your mail at the street address, or at a P.O. box? The Notice of Default and Notice of Sale must be sent by certified (or registered) mail, and most foreclosure trustees use regular mail as well, knowing that some people refuse their certified mail. Also, the sender must retain copies of the proof of mailing.

There are notices which much be strictly adhered to prior to the foreclosure. I can review the file for a reasonable fee. You will get a three-day notice to quit. After that there must be an unlawful detainer petition filed and an order to remove you,. Contact me directly.