Legal Question in Real Estate Law in California

Re: Forclosure, NOD, Wrong Leagal Description

First, I'm not going to be able to give you an overall answer or even very many specifics; there are just too many variables and possibilities. I will try to speculate knowledgably on a few of the aspects of your situation.

The pace of foreclosure following default has fallen off noticeably, with lenders being a lot slower to go through with a foreclosure sale after a default, for at least two reasons: they are backlogged with foreclosure work, and also if they just wait it out, property values may snap back and they will get more on an eventual sale. There may be another reason: staff cutbacks have caused a lot of clerical and administrative problems in the back-office operations of lenders.

The notice of sale can be given at any time after the expiration of the three-month period following the recordation of the notice of default. There is no statutory requirement that it be given within a specified time thereafter and, in the absence of facts showing a waiver of the default or an estoppel, a substantial delay in giving the notice of sale does not invalidate the notice of default or the subsequent foreclosure sale.

At some point, someone (probably the lender) will probably initiate legal action to correct the clerical error in filling out the deed of trust, and that might be combined with a suit to foreclose your loan judicially, but perhaps not; the suit would probably seek damages from the escrow company.

If your loan was purchase money, you should be immune from a deficiency judgment after a foreclosure sale for an inadequate amount, but if the lender feels it has a case for waste or loan-application misrepresentation it could still file a suit for money damages after foreclosure.

Yep, I think I'd look for a lawyer in your county who would be willing to give you a free initial consultation, and even pay for some follow-up research and opinion-writing if warranted.