Legal Question in Real Estate Law in California

Re: Notice of request to enter default

If you received a mailed copy of a Request for Entry of Default, there's a good possibility the default has already been granted. By looking at the boxes checked, you can also see whether the plaintiff is also asking for a default judgment. Sometimes they do, but not always.

If requested, the judgment can be obtained in one of three ways, usually dependent on the type of relief requested and the complexity of determinging the amount of the judgment. If the amount is based on breach of a contract or non-payment of a note and is easily determined from the complaint, the court clerk can grant the judgment. More complex matters may require a judge's review and decision, which in turn can sometimes be granted on the basis of filed affidavits or declarations, and at other times may require the plaintiff to appear and give live testimony and present evidence.

Once default is entered, with or without simultaneous grant of a default judgment, the defendant is "out of court" and cannot present a defense or otherwise participate in further proceedings. The defendant can, however, petition for relief from default, and if good cause is shown (such as mistake, faulty service of process, etc.) the court usually grants relief and the defendant may then defend, either in pro. per. or through an attorney.

Step one for you should be (or should have been) to determine whether the agent's claim for a commission is good. Generally, the commission is earned when a qualified buyer is signed up and any significant conditions are met or waived, whether or not the sale closes.

Since the agent's claim is not a mortgage or deed of trust, the rules requiring a lender to go after the real property first and in many cases barring the creditor from obtaining a deficiency judgment would not apply, and the agent's judgment for the unpaid commission can be enforced against any non-exempt assets you might have, and possibly even in Europe. As to a foreclosure sale of the property, the proceeds would be applied first to the costs of sale, property tax liens, and then recorded liens in recording sequence, oldest first. Very likely there would be nothing available to apply to the judgment lien.

I would not advise spending money to set aside the default unless it's pretty certain you can prevail in the underlying matter (i.e., the commission wasn't earned). You could end up owing the agent's additional attorneys fees as well.

Re: Notice of request to enter default

You cannot file bankruptcy unless and until you have resided in the US for at least 3 continuous months. Once a judgment is entered, all assets anywhere in the US may be seized (except for a few exemptions recognized by each state).

You would need to talk to a lawyer who specializes in international law in the country you currently reside to find out if assets in that country may be seized.