Legal Question in Real Estate Law in California

Re: forclosing on property I hold a note on

I'm not sure how they would acquire that right, and I'm not sure I understand your questiom.

Since you speak of "get it back," I'm guessing you are the former owner who took back a purchase-money note to assist the buyer, who then defaulted.

Title companies are usually just in the business of selling title insurance, and in the course of doing that they examine titles and issue title reports to lenders and buyers. Generally, they are not in the business of acting as brokers, so I think it would be unusual if they somehow acquired the right to sell repossessed property as broker or agent for the repossessing lender. This is especially puzzling if they are only assisting you with a foreclosure.

Possibly the "assistance" you bargained for them to provide was to act as your trustee in foreclosing on the property. If this sounds like your deal, you should probably go over the ground rules of the foreclosure process with them, because it sounds to me as though you may not understand how a foreclosure by trustee's sale works.

First, you don't automatically get the property back. Whomever is the high bidder in the trustee's sale ends up owning the property - you would get money, not the property. You CAN get the property back, but in order to do so, you have to be the high bidder at the trustee's sale, which is an auction. You have an advantage in that you can "bid" with what you are owed; all others must bid cash.

However, the purpose of a foreclosure is not to get your property back, it is to sell the property to the highest bidder to get cash to pay off the money you lent the buyer.

I repeat that I don't really understand your question, thus this answer may miss the mark.

Re: forclosing on property I hold a note on

If you foreclose on the property and there are no bidders, title will revert to you and the note you held will be extinguished. A trustee's deed transferring title to you will be recorded and then you will be able to sell the house. If someone goes to the sale and bids in the opening bid or more, then they will be the purchaser at the trustee's sale and you will merely get the proceeds you are due under the note. The title company cannot sell the house, per se, but if the title company is the trustee and someone submits a valid bid at the sale, then they are required to accept the bid--that is what happens at a foreclosure.