Legal Question in Real Estate Law in California

You are very unlikely to get a specific and accurate answer via this type of blog.

Your facts are tooooo general to be used as basis for legal advise. You say started Short Sale which indicates that you were still the legal title holder, but the officer of the corporation changed his mind and then purchased directly form the bank.

Well this did not happen until the bank/servicer/lender foreclosed and a trustee's deed was issued. Who was the actual recipient of the trustee's deed. Are you sure your loan was not securitized? held by trust?

Did you report the attorney to the State Bar for ethics violation? Was this an actual conflict or potential conflict, did you have a contract? did you pay the attorney?

How much was the interest in property that you lost? your damages?

How much are you willing to spend to get that back?

What has changed in you own personal financial situation that would allow you to make payments on the property?

Mr. Lockhart raises very valid issues. Again responding to your core question, you are never going to make anything out of the corporation being suspended. Suspension is nothing but a lever the state holds to make corporations get current on their annual filings, or franchise tax, or whatever. It never gets private parties anywhere, because it is so easy to cure and retroactively validate what a suspended corporation did. Of all the vague generalized "facts" you list, the only thing that sounds promising is the attorney's conflict of interest. At this point, however, you need to stop trolling for a free answer to questions that require a full detailed and carefull review of all the facts and circumstances. Time to call a lawyer and make an appointment.

I agree with Mr. Lockhart that the facts given are imprecise and seem to omit essential facts needed to analyze the question or questions presented. Nevertheless, I can address the suspended corporation issue in general. While it is true, as Mr. McCormick says, that the suspension rules act mainly as a lever to force payment of franchise taxes and/or filing of statements of officers and directors, the law does give those who have dealt with the suspended corporation a remedy. Any party that entered into a contract with the suspended corporation can have the contract rescinded by filing a lawsuit for that purpose. A contract entered into during suspension can be declared void only in judicial proceedings (e.g., suit to rescind the contract). Such relief cannot be granted unless (i) the corporation was allowed a �reasonable opportunity� to obtain revivor; and (ii) the corporation receives full restitution of benefits conferred by it under the contract. [Rev. & Tax.C. �� 23304.5, 23305a]

However, it looks as though the bank, and not you, sold the property, presumably after becoming the owner in a trustee's sale. Therefore, any right to sue to rescind would belong to the bank's successor, which could be the U. S. Comptroller of the Currency, or the FDIC, if it failed, or another bank if it or its assets were sold. You are out of the picture. Your remedy may be to sue the attorney for breach of fiduciary duty, fraud or malpractice.

By the way, a lawyer cannot knowingly represent a suspended corporation in court, and it is a misdemeanor for anyone (president, owner, lawyer) to attempt or purport to exercise the "powers" of a corporation while suspended (Rev. & Tax Code 19719). I think violations of this code section are commonplace and prosecutions very rare, but still possible.