Legal Question in Real Estate Law in California

Re: Foreclousure Redemption California

As I understand it, if this were a foreclosure by trustee's sale rather than a foreclosure by court process (a so-called judicial foreclosure), there is no right of redemption after the sale. The sale is not final until the trustee's deed is recorded, but when it is recorded, the recordation dates back to the time of sale shown on the deed. Trustee's sales can be set aside if there has been fraud or some gross irregularity in the process, but when the sale is handled by one of the professional services, as usually happens these days, goof-ups and fraud rarely can be found.

If the foreclosure was judicial, however, there is a substantial redemption opportunity; if I remember it can be either six months or one year depending upon the circumstances of the foreclosure suit. I think more than 99% of all foreclosures are by trustee sale.

So, you are now (probably) in the tough position of being in a contract to sell a house you no longer own and cannot redeem. You should discuss the predicament with your broker.

Just in case I misunderstand, you do mean the foreclosure sale took place, right? Some people misinterpret the receipt of a notice of default or notice of sale as foreclosure itself. These are only steps in the process, and at these times you can still redeem your property by paying the arrearages, costs, penalties and interest.

Has the holder of the first taken any action?

Re: Foreclousure Redemption California

Take note of Mr. Whipple's comments, and go consult with a local real estate attorney to see IF you have any rights and remedies worth pursuing. Probably not, but check. Hope you don't get sued by the new buyer you contracted with.