If the foreclosure was wrongful, you may be able to void the trustee's deed and recover your property. Here's what California law requires to set aside a sale.
Under California law (see Lona v. Citibank), you must prove all three:
The sale must have been conducted improperly. Examples:
The violation must have actually harmed you:
Generally, you must offer to pay the full amount owed. But there are important exceptions:
This distinction is critical:
If a bona fide purchaser (BFP) bought your home at or after the sale, setting aside becomes much harder. They paid value in good faith without knowledge of defects. Your remedy may be limited to money damages against the servicer/lender.
A set-aside lawsuit typically includes multiple causes of action:
File a lis pendens (notice of pending action) to put future buyers on notice. This can prevent the property from being sold to a BFP while your case is pending.
Time limits vary by claim:
Every day you delay hurts your case. The property may be sold to a BFP. Evidence may be lost. Your memory fades. Statutes of limitations run. File as soon as possible after the sale.
If the lender bought at the sale (credit bid), you're in better shape than if a third party bought:
Act quickly before they sell to someone else.
Yes. If set-aside is impossible (BFP purchased, you can't tender), you can still pursue:
If you successfully set aside the sale:
Expect 1-3 years for full litigation, though results vary:
I evaluate set-aside cases and pursue claims where the evidence supports relief. If servicer misconduct caused you to lose your home, I can help you understand your options.