Legal Question in Real Estate Law in California

My first reaction is that your lender has made a mistake. They are overworked and understaffed and getting very careless. A sale made without proper notices is probably void unless the buyer, or a subsequent buyer, was a bona fide purchaser for fair value without notice of the irregularity of the sale (a so-called "BFP"). If the bank was the buyer, and has not re-sold the property, the sale is probably void and can still be set aside, since under these circumstances there is no BFP.

There may be two possible legal paths to take. One is to void the sale; the other is to let it go through and sue for damages for wrongful foreclosure. Making a choice would require more facts, including the identity of the purchaser, whether there is now a BFP or not, and your own preferences.

A notice of trustee's sale of a residence must be posted physically on the residence, as well as served by mail and recorded. Almost any irregularity in the Notice of Default, Notice of Sale, or Trustee's Auction can be a basis for an action for damages, or unless the buyer is a BFP, a ground for a suit in equity to set aside the sale.

Quick title research should be done at the Sonoma County recorder's office to see what has, and what has not, been placed in the public record in the past six to twelve months. This is probably step one; establishing a fatal mistake in the foreclosure process. Act fast before the property is sold to a BFP, if you want it back rather than damages.

An unlawful detainer action will probably be served and filed against you when you don't respond to the three-day notice. (Alternatively, the lender may recognize its blunder and reverse the process, or re-do the sale after taking proper steps). If you are sued for UD, it may be appropriate to assert your claims against the lender and trustee by cross-complaint in the UD action.