The lender did not adhere to CA §2923.5, but sold the house anyway. We are in a lawsuit against the lender for fraud in the modification process. I have read that after the forclosure sale has been held, §2923.5 provides the borrower no relief. The lender engages in other fraudulent acts, so even though I can get no relief from the auction sale (like a reversal of the sale), can the lender's malfeasance be challenged, or mentioned as a contributing factor for fraud (and possibly, negligence - because great emotional harm was done)?
Yes, it could. See the appellate opinion here: http://scholar.google.com/scholar_case?case=2926954549438055358&q=skov+v+us+bank&hl=en&as_sdt=2,5
OTOH, you will need a lot more than this to prove a fraud claim. If you are self-represented because you cannot afford an attorney or are unable to interest one in your case, chances are you're going nowhere with it. Prior to spending a lot of time and money, consult with an attorney to see if you have any chance of obtaining damages based upon your particular facts. Good luck.
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Estate Planning Attorney
If you can prove the lender violated 2923.5, while it may be too late to stop the sale, you could win damages against the lender. If the property went REO (back to the lender) the lawsuit and threat of these claims could enable you to negotiate a resolution with them where they rescind the sale and give you a mod or something else. You should hire a lawyer though as doing this on your own will be a lot harder to prevail.
If you are looking for an attorney, a good place to find a qualified consumer attorney in this area www.naca.net. It stands for National Association of Consumer Attorneys. The link is also below.
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