Legal Question in Real Estate Law in California

Re: trustee sale

Yes, it's possible that you took the property subject to one or more encumbrances.

Re: trustee sale

You would have to read all of your "paperwork", but it is very probable the answer is in the affirmative.

Re: trustee sale

Possibly. First, I'm assuming this was a sale by a trustee under a power of sale contained in a deed of trust.

Ordinarily, a trustee's sale following a properly-conducted foreclosure sale results in the buyer getting a trustee's deed that delivers the property free and clear of the foreclosed obligation and all junior liens. However, the trustee's sale does not wipe out senior liens.

For example, if the loan being foreclosed was a second deed of trust, you would acquire title subject to the lien of the first deed of trust and would be responsible for the payments - usually not personally, but if the payments weren't made, the first trust deed holder would soon foreclose and you would lose the property (unless you also bid successfully at that foreclosure sale).

Re: trustee sale

Any time that you purchase a piece of land, you are taking title subject to any liens of record that have not been cleared.

In a standard real estate purchase, you have a title insurance company with an escrow company to make sure all the liens are cleared and that you have marketable title. In the case of a foreclosure or trustee sale, you do not necessarily have any assurances that title will be completely clear when you make the purchase. That's why you should always investigate the status of title before purchasing property and a trustee or foreclosure.