Legal Question in Real Estate Law in California

Unfortunately the law has a major flaw in it. The lender must give you notice of default and must give you notice of the sale, but if the sale is postponed for less than a year they do not need to give you special notice anymore. They just have to give general public notice by publication and posting at the courthouse or other public location designated in the county. So once you get a notice of sale, and it is postponed, it is up to the owner/borrower to keep on top of public notices to see if there is a new notice of sale, because they will not be sent one.

You need to have an attorney review your matter as soon as possible. If the bank recorded a notice of default, and you set up a short sale, the bank may have recorded a concellation of the notice of default. If the bank rescinded the notice of default, they would have to record and mail you a new notice of default. This would have to be given to the trustor's (borrower - you) address as listed in the deed of trust, and any actual address known by the trustee. If the bank did not comply with these requirements, you may be able to set aside the trustee's sale (nonjudicial foreclosure) but would still be subject to foreclosure again, unless you could get the bank to do an approved loan modification. So, my advice is for you to gather all of the actual recorded documents and see an attorney.