Legal Question in Real Estate Law in California

Re: breaking the law

This is not my area of expertise, but since no one else has responded, I will attempt to give a correct answer. While the bankruptcy petition is pending no legal action can be taken against the person or their assets. So filing with the court a default notice would be invalid and the sale of the house could be voided. The bankruptcy court could be sanctioned. I would assume that a notice of the bankruptcy filing might be placed in the property's assessment file so that once properly filed all subsequent dealers in transations as to the property wold be considered to have actual notice.

Re: breaking the law

I, also, am not an expert in this area. My limited knowledge would lead me to second Mr. Shers' opinion.

Re: breaking the law

This is a complex question. The answer depends upon the facts. Was the mortgage company aware that a bankruptcy had been filed. The sale of the property to a bona fide buyer would be a valid sale. A bona fide buyer would be someone without any knowledge of the bankruptcy. You should discuss this with your bankruptcy attorney or retain an attorney to represent you in this matter.