Legal Question in Real Estate Law in California
I am being asked to sign a release for surplus funds that are owed to me from the sale of a foreclosed home. However the sale was not completely legal as tey did not notify me of the action. Since I have hired an attorney to handle the matter and the trustee is contacting me directly asking me to sign and notarize and waive a 1542 civil code. I would like some feedback on this if possible
4 Answers from Attorneys
Consult with your attorney immediately.
If you have hired an attorney, that's the person who should be giving you advice. If the attorney admits lack of foundational knowledge to answer your question, you've hired the wrong attorney.
I would like to comment on one aspect, however. When you say "They did not notify me of the action," do you mean that the foreclosing creditor did not send the 20-day notice by certified mail at all, i.e., is unable to produce a post-office stamped mailing receipt in response to your demand for proof of mailing, or do you mean it didn't arrive, or it went to the wrong address, or you didn't sign for it, or you got it but didn't open it, or what? Your chances of winning seem to depend upon when and where the notification process went awry,
If you sign a release that contains a waiver under Civil Code section 1542, then you are waiving any known claims and any unknown claims against the trustee. You are basically destroying your right to sue the trustee, and would not be able to proceed against the trustee if they did not properly send you notice.
Is there any particular reason you are not raising this issue with your attorney?
Why aren't you asking he attorney that you hired? You should do so immediately.
BARRY BESSER
www.besserlaw.com