Legal Question in Real Estate Law in California

Re: foreclosure/lost equity

Probably not. Trustee's sales are generally final once the bidding is concluded and the trustee accepts the highest bid. If the trustee discovers an irregularity before delivering the trustee's deed, the trustee can cancel the sale and refuse to deliver the deed. When the deed is delivered, the sale cannot be set aside except for a serious irregularity such as fraud, and that will probably require a court order after a formal complaint and taking of evidence.

However, that said, your question doesn't give quite enough facts to allow me to understand what happened here and whether you have a valid cause for concern or not. I take it the beneficiary of the 1st D/T was the successful bidder, which is not unusual; but did they pay only $55,000 or did they pay that on top of their credit bid, i.e., on top of what they were owed? Was there a second loan? Did you attend the sale to observe how it was conducted and who participated?

I think the possibility of an irregularity warrants taking all the facts to a local real-estate lawyer for a free consultation, if you can get one.....but on the limited facts given, I can't tell whether you lost over $400,000 of equity or a lot less.