Legal Question in Real Estate Law in California
lis pend, unlawful detainer and crooks
I sold a house last year and carried a loan for part of the money. The people have already quit paying. The person that bought my house are suing the real estate compay. Several people are on the lawsuit and it involves several properties. They filed a lis pend on my property and they have the house up for sale for less than they owe on it. My property is breifly mentioned in the case.
Yesterday I went to court and found that these people have tons of unlawful detainers and many breach of contract cases against them. I think they are scam artists. What can I do about it? I think they are not really going to sell it and try to live there as long as possible
thanks
--name removed--
5 Answers from Attorneys
Re: lis pend, unlawful detainer and crooks
Make a motion to strike for frivolous lawsuit. Very time specific, the plaintiff must show a probability of prevailing. Call me directly at 16192223504.
Re: lis pend, unlawful detainer and crooks
Begin foreclosure proceedings immediately or sue for default on the loan. Good luck.
Re: lis pend, unlawful detainer and crooks
You need to initiate foreclosure now. I am assuming that when you carried back a promissory note, that this was secured by a deed of trust. In California, a deed of trust can be foreclosed nonjudicially, through a public sale of the property. You are entitled to bid on the property at the sale for the amount of the outstanding indebtedness.
It sounds from your question that a lis pendens was recorded against the property, but that the lawsuit does not relate to the property. A lis pendens in only property in an action in which title to property is in dispute, and the lis pendens only relates to that property. If the property that you have a security interest in is not the subject of the lawsuit, you may have to expunge the lis pendens, especially if you purchase the property at a nonjudicial foreclosure sale, and opt to sell the property further down the line.
You should talk to an attorney immediately in your area. It does appear that the purchasers of the property are scam artists.
Re: lis pend, unlawful detainer and crooks
Improperly filing and/or recording a lis pendens can be a tort known as "slander of title" for which damages can be recovered. When you call it "my property," I assume you mean "my former property on which I'm still carrying paper." To sue for slander of title, you would have to show that your interest as a lien holder was impaired by the lis pendens, but I think you can do that.
Even if your note isn't secured by a deed of trust, you still have what is called a vendor's lien. Civil Code section 3046 says, "One who sells real property has a vendor's lien thereon, independent of possession, for so much of the price as remains unpaid and unsecured otherwise than by the personal obligation of the buyer."
Unfortunately, if you have no recorded deed of trust securing your note, and have to resort to enforcement of your vendor's lien, you can't foreclose by trustee's sale, since there is no trustee and no "trust." However, you can enforce your vendor's lien in court through a suit for judicial foreclosure and/or other remedies that may be appropriate in the circumstances.
If of course you have a recorded deed of trust, you should commence foreclosure proceedings by serving and recording a Notice of Default. Get a lawyer or foreclosure consultant, or both. Probably best to get a lawyer first, due to the strange circumstances that may involve fraud by clever con artists.
Re: lis pend, unlawful detainer and crooks
Well, was your loan secured by a deed of trust? If so, we foreclose and possibly sue at the same time for deficieny and fraud. I have a foreclosure action going right now and I am experienced in this area. Give me a call if your ready to get serious.