Legal Question in Real Estate Law in California

Re: foreclosure

Hmmm ... I guess I don't really get the question.

When someone finances a house purchase in California with a promissory note secured by a deed of trust, they are entering into an agreement that says, in effect, "if I don't make the payments called for by the promissory note, the holder of the note (which may be but often isn't the 'mtg company') can have the house sold at auction and reimburse itself out of the proceeds.

Another way of saying this is that if you default on your loan, the lender can sell the house out from under you.

I don't think having a signed loan modification makes any difference. The loan modification agreement will (almost always, at least) still include the right of the lender (note holder, beneficiary, mortgage man, or whatever) to foreclose by trustee sale if the agreement is breached.

If this doesn't answer the question, please ask it again with a bit more description of the situation you need to have explained.