Legal Question in Real Estate Law in California

Whoever helped you with the loan mod probably misled you by reassuring that they would work on lowering payments for you but did nothing, and that's why the bank foreclosed. Sorry, but your recourse is probably to complaint to the State Attorney General and pursue the loan mod company in small claims.

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We see this happening very often. Loan modification companies do not and cannot assure you that being in the process of loan modification is a promise that foreclosure is put on hold. Even when you are dealing directly with the lender to get your loan modified, they sometimes surprise you by going right ahead with their foreclosure. I think the best preventive advice is to be sure you complete your loan modification before the sale date. After it has happened, I don't know of any other recourse than as suggested by Mr. Doan. If you had been dealing directly with the lender rather than a third-party loan-modification company, there might be some additional remedies available through a superior court complaint for some kind of fraud, but not necessarily.