Legal Question in Real Estate Law in California

You should see any attorney who handles this type of matter to see if there is anything you can do. It undoubtedly did sell to the investor who foreclosed but he should have given notice to the first mortgage holder who would have also foreclosed or who might now based upon a due on sale clause. You need to see an attorney because there may be no reason to keep on paying on the first loan, or you might want to. I do not have enough facts to know what you should do.

Well, the statement that "the home did not sell" is probably incorrect or incomplete. More likely than not, what they mean is "the home did not sell to a third-party bidder." The home probably sold to the foreclosing lender (and you should ask them for a written summary of the results of the trustee's sale). In any event, you can check with the County Recorder's office to see whether a trustee's deed has been recorded (it probably has, by now). The next step, very likely, will be an unlawful detainer suit by the lender (who is probably the new owner). Hope is very scarce at this point. You can at least presumably stop making payments on the first mortgage, which is presumably now the responsibility of the new owner.