To set aside a foreclosure sale or recover damages in California, you must prove specific legal elements. Here's what courts require and how to build your case.
California courts require you to prove all three of these elements to set aside a foreclosure sale:
You must show the sale was conducted improperly. This can include:
You must show the irregularity actually harmed you. Ask: would the outcome have been different without the violation?
Generally, you must offer to pay the full amount owed to challenge the sale. However, there are important exceptions to the tender rule.
In Lona v. Citibank (2011), the court held that to set aside a trustee's sale, the borrower must prove: (1) the sale was conducted in an illegal, fraudulent, or willfully oppressive manner; (2) the borrower was prejudiced; and (3) the borrower tendered or was excused from tendering.
Wrongful foreclosure claims are typically based on one or more of these theories:
Dual tracking, no SPOC, failure to evaluate modification. Provides for injunctive relief before sale, damages after.
Servicer promised modification but foreclosed anyway. Requires written or oral agreement and reliance.
Servicer lied about modification status, told you not to pay, or used robo-signed documents.
You relied on servicer's promise (e.g., "don't pay while we review") to your detriment.
Servicer owed duty of care and breached it, causing harm. Duty can arise from HBOR or loan documents.
Unfair business practices. Broad claim that can incorporate other violations. Allows for injunctive relief and restitution.
Challenge lender's right to foreclose—broken chain of title, no standing, unrecorded assignment.
Void the trustee's deed if sale was improper. Related to quiet title but focuses on the deed itself.
California courts have become stricter about requiring proof of prejudice. Under the Yvanova line of cases:
If you prove wrongful foreclosure, you may recover:
It depends on the claim:
Act quickly—delays hurt your case even within limitations periods.
A bona fide purchaser (BFP) makes setting aside the sale much harder. California law protects good-faith buyers who paid value without knowledge of problems. Your options:
Yes. Being in default doesn't excuse lender misconduct. However:
Focus on violations that prevented you from getting help you qualified for (modification, reinstatement opportunity, etc.).
Strongly recommended. Wrongful foreclosure cases are legally complex and involve:
Many attorneys take these cases on contingency if there's a strong claim with substantial damages.
I evaluate wrongful foreclosure claims and pursue cases where the evidence supports relief. If you lost your home to servicer misconduct, I can help you understand your options.