Legal Question in Real Estate Law in California

This is a problem that seems to be coming up more and more frequently these days - people who think they are close to a successful loan modification or short sale suddenly finding that the lender is jerking the rug out from under the modification or short-sale process and going straight to the foreclosure sale. Although it seems like a dirty trick, I don't see anything unlawful about it, assuming (1) the foreclosing lender has carried out all the usual legal steps to do a trustee's sale, and (2) the lender has not made an enforceable promise not to foreclose while the modification or short sale is in the process of negotiation and approval. Recent legislation has strengthened the rights of lessees in foreclosed properties, but to the best of my knowledge there is nothing invoking a moratorium on foreclosures at present, but look at a Web site modifyloan.net for further information.

I would just add that you are asking this way too late. Unless there was something illegal about how the sale was done, now that a third party owns the property having bought in good faith, you MIGHT be able to sue the lender for damages if you have a cause of action, but if the house was upsidedown, you probably don't even have damages.