Legal Question in Real Estate Law in California

Re: Foreclosure Sale

Have you done everything to try to save the home? If there is any equity in it, ther are numerous people who have taken real estate seminars who ae looking for foreclosures where everyone can make some money. To protect your credit, have you attempted to see if the Bank wil agree to a short sale [they agree to a minimum price and get that amount and any excess in return for listing the loan as being fully paid; you will have a hard time getting a loan for a new home with a foreclosure on your record]. Bank do not want to be in the real estate business so sometimes you can get them to re-write the terms of the loan.

If the sale is held, the lender "paper bids" the amount of the loan. If anyone bids higher than that, they end up with the property. Your credit records will show a foreclosure, the lender will not come after you for any "loss", and technically you must leave when the sale is over [the sherifff can be asked to remove you].

Good luck.

Re: Foreclosure Sale

I agree with Mr. Shers. I would add that foreclosure sales sometimes get postponed right up to the last minute if the trustee or beneficary (lender) sense that there is something to gain by postponement, such as a deal with the borrower, or maybe a sale with more bidders present at a later date, or that there has been some irregularity in the process.

If the sale isn't postponed and does go forth, there will almost certainly be at least one bid - the lender's.

Depending upon who buys the house, it might be possible to rent from the new owner. However, your question suggests a tight housing market, so maybe the buyer would prefer to get a tenant with unimpaired credit.

You did not explain your difficulty in finding another home. It could be due to a tight market and lack of supply, but I consider that doubtful in today's economy. More likely, you have neither the cash for a down payment nor credit for a loan. You are probably looking at being renters for a while. Talk to a property management company or rental agency, explaining your circumstances and needs.