Legal Question in Real Estate Law in California

Your post is confusing. I can't tell if the vendor's lien has gone to a judgment, and whether or not there are two seller (builders) involved. Can you repost and be less confusing?

I have handled cases almost identical to this one when I was a vice president of Fidelity National Title and Chicago Title. We would be in the position of defending lenders for whom we had insured their deeds of trust. I have to agree with Mr. Roach that your question is confusing, but it is easy to become confusing when vendor liens are involved. If the private lender who foreclosed had the good sense to require a lender's policy of title insurance at the time the loan was made, the simple answer is to tender a claim to the title insurance carrier and let them sort it out. The law of vendors liens is not simple, but they are in fact relatively weak claims if you know how to attack them, and can often be thrown out on summary judgment. If a judgment is already in place, however, the lender may have to file a third party claim proceeding or other challenge. If there was no title insurance, or if there is any trouble with the insurance company, then you need to have someone go over the exact details and history of transactions on the property to determine the status of the vendor's lien. Feel free to give me a call to discuss this. It's definitely not something that can be sorted out in an internet Q&A if there isn't a title insurance company taking it over for you.