Legal Question in Real Estate Law in California

Read through your mortgage documents as you probably have the typical "due on sale" clause that upon the property being put up for sale the entire loan becomes due. That would either stop any buyer from attempting to purchase the property or force the seller to come to you to discuss the situation. You might want to work out a solution in which you take back the property but retain the original down payment and all loan payments, if any, made thusfar. But remember that there is a second on the property too. Filing for a non-judicial foreclosure itself would not legally prevent the fproperty from being sold.

If the property goes into escrow, you will probably receive a request for your pay-off demand; i.e., the buyer will be paying you off and will be asking you for the amount then due you so you can be paid at close of escrow. I'm not sure why you would want to stop the sale; you'll be paid off. Maybe you'd rather own the property yourself than be paid off?

As. Mr. Whipple states, you will get a demand from the escrow for a payoff statement, and they will hold your funds pending a reconveyance from your trustee. If paying of the deed of trust is not a term of the sale, the buyer takes subject to your deed of trust, and as Mr. Shers states, triggers any due on sale clause in the deed of trust.

If you file a foreclosure, you will certainly interfere with the sale, and possibly screw yourself out of payment. This is not the market to to do so.