Legal Question in Real Estate Law in California

You have a couple of issues. First of all, the purchaser of a home at a foreclosure sale is entitled to bring an unlawful detainer action to have the previous owner evicted. They are what is known as a tenancy at sufferance.

Upon recording the trustee's deed upon sale, the purchaser is entitled to bring an unlawful detainer action against the former trustor in order to get possession of the property. "In any of the following cases, a person who holds over and continues in possession of a manufactured home, mobilehome, floating home, or real property after a three-day written notice to quit the property has been served upon the person, or if there is a subtenant in actual occupation of the premises, also upon such subtenant, as prescribed in Section 1162, may be removed therefrom as prescribed in this chapter: ... Where the property has been sold in accordance with Section 2924 of the Civil Code, under a power of sale contained in a deed of trust executed by such person, or a person under whom such person claims, and the title under the sale has been duly perfected." (Code of Civ. Proc., sect. 1161a subd. (b)(3).)

The second issue is more important right now, and is raised by the fact that you mentioned they filed bankruptcy. What I am wondering, which is not clear from your post, was when the trustee's deed upon sale was recorded, and when the bankruptcy was filed. "For the purposes of this subdivision, the trustee's sale shall be deemed final upon the acceptance of the last and highest bid, and shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee's deed is recorded within 15 calendar days after the sale, or the next business day following the 15th day if the county recorder in which the property is located is closed on the 15th day." (Civ. Code, sect. 2924h subd. (c).)

What this means, is if the bankruptcy was filed after the sale, and the trustee's deed was not recorded until more than 15 days after the sale, then your title is not yet perfected. If the trustee's deed upon sale was recorded within the 15 day period after the trustee's sale, then the title is perfected, and the bankruptcy debtors no longer have any equitable right in the property. This may still require a motion to lift the bankruptcy stay, pursuant to 11 U.S.C. sections 362 subd. (d)(1) and (2).