Legal Question in Real Estate Law in California

Re: Default

There are very strict statutory steps that must be taken in order for there to be a Trustee's sale. It is difficult to respond without seeing the documents that you do have, and to get some information from a title company.

Who was the lender, who was the supposed buyer, etc. If the steps were not followed, then the sale can be voided.

Re: Default

Based upon the facts given, I would bet that in your "cure contract", which is often called a "forbearance agreement", there was a provision that stated that in the event that you did not live up to the terms of the contract, the lender would be entitled to go forward and complete their already commenced non-judicial foreclosure. If so, and as you indicated that you could not live up to the agreement, they would be entitled to go forward with the foreclosure; the payment of "partial payments" does not need to be accepted by a lender.

It is hard to understand what you mean about notice of sale, etc., but this type of foreclosure is called a Trustee's Sale, and they do not put "for sale" signs on the lawn; rather they hold a bidding sale at some public place, and if no one bids, it is "sold" back to the foreclosing lender for the amount they are owed; if someone bids over the amount they are owed, then they get a Trustee's Deed which transfers title to them as owner, so the process is not an actual "sale," in the traditional sense. If someone bid for and bought it at this sale, they have the right to evict you, as you no longer own the property, and yes, this is legal. When you got your loan with the lender who foreclosed on you, you signed a note and a Deed of Trust which provided that in the event that you fail to live up to the loan agreement, the lender can foreclose and take back the property in payemnt of the debt you owe it.

Re: Default

The prior responses may sound contradictory, but they're not. They explore different factual scenarios and are complementary. The bottom line is that if you have any equity in the property and/or want to remain in possession, you need to get yourself local legal assistance, and quickly. There is a fair chance a lawyer can find a procedural mis-step in the foreclosure and have the sale set aside. You can't save your house by self-help or bulletin-board inquiries, though.