Legal Question in Legal Ethics in California
Attorney forced house to foreclosure, helped renter buy it at auction for profit
I bought a house several years ago that I was going to fix up and sell. Since I was already rehabbing another couple of houses, I allowed the seller to stay in the house and rent it.
I finally got ready to rehab, asked the renter to vacate and they contacted an attorney who filed a Quiet Title and a Lis Pendens. The renter argued that they had been told by me that they could rent for a while and then buy the house back. That was never discussed, and never an option and never attempted.
The renter stopped paying rent. I couldn�t afford the additional cost and the house went to foreclosure sale. The renter showed up at the sale with her attorney and bought the house at foreclosure sale for penny�s on the dollar.
Is this a legal and ethical action by the attorney? ie Tie up the property so that it can�t be sold or refinanced, then go to the sale with someone and help them purchase the property?
Can I file a Lis Pendens on the property since the lawsuit is still active?
1 Answer from Attorneys
Re: Attorney forced house to foreclosure, helped renter buy it at auction for profit
Find a real property attorney at once and retain him/her. If you can prove your allegations, you are dealing with fraud.
Next time, reduce all your agreements to writing. Because you didn't retain an attorney for a few hundred dollars, you now may lose thousands.