Legal Question in Real Estate Law in California

Re: sued

Yeah, I don't see any way that the foreclosure proceeding would be a defense.

If a driver hits a pedestrian in a crosswalk, it is no defense that his car is repossessed a week later.

About the only impact that I can see is that if you have lost your equity due to a poor result in the foreclosure sale, that will be one less asset that a successful plaintiff could come after for satisfaction of judgment. Otherwise, I don't see how the foreclosure itself is going to help or hurt the neighbor's suit.