Legal Question in Real Estate Law in California

There may be other uses for bonds in the context of a foreclosure, but the one that comes to my mind is used when a lender wants to foreclose, but can't come up with the original, signed promissory note upon which the borrower has defaulted. California law doesn't require the foreclosing lender to produce the original signed note as a prerequisite to foreclosure. A bond may be posted instead, to protect the borrower against double claims if some other person or entity later on is able to come up with the note.

A "bond" is always a promise to pay. It is the result of a contract, with a third party, that promises to pay if something happens in the future. In that sense, Mr. Whipple's response makes sense. It could also be from an earlier recorded deed of trust or mortgage, in which a private party was the lender and could not be located after a lapse of time to respond to a pay off demand.