Legal Question in Wills and Trusts in California

It depends on how the bank forecloses. If they do it through a non-judicial foreclosure (technically called a "trustee's sale" under the power of sale in the deed of trust) they are prohibited from seeking any other form of recovery for the debt. If, however, they have reason to believe that they can recover a deficiency judgment from you, particularly if they are making any fraud claims, then they would proceed with a judicial foreclosure lawsuit and ask for a deficiency judgment. If they went that route (99.99% of the time they do not do this) they could enforce the judgment against any assets you have. If your trust is revocable (virtually all living trusts are) then, yes, they can pierce the trust to enforce the judgment. So, bottom line, unless you get served with a summons and complaint in Superior Court, the foreclosure will preclude the bank from pursuing the debt any further after foreclosing.