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Can 1st TD foreclose if borrower no longer on title?

Pasadena, CA |

My home was foreclosed by the 2nd TD and my name is no longer on title. The 2nd TD took title and now the 1st TD filed a NOD because there was a change of title. Can I file BK to stop the foreclosure? Can I still save my home?

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Attorney answers 4

Posted

Once the gavel drops on the auction, the house is sold, no matter if its a first trust deed, second, third, or hoa. Since you no longer own the property, short of a fraud in the foreclosure process, there is nothing you can.

A bankruptcy can only stop an eviction.

Attorney's response is not intended as legal advice and is intended for informational purposes only. Attorney's response does not create an attorney client relationship. Inquirer should seek the advice of a duly licensed attorney within that particular jurisdiction.

Asker

Posted

How could the lst protect the original owner when the second files UD? Can't they protect the first and not allow the second to evict the original owner of the loan they are working with ?

Arash Shirdel

Arash Shirdel

Posted

I think you posted this question on another thread. The 2nd trust holder is now the owner of the property and can evict the previous owner. The first doesn't have any rights to prevent eviction.

Posted

If your statements are accurate, you are too late to stop foreclosure of your interest in the home. According to your description, foreclosure has already been completed as to your interest. You can contest whether the foreclosure was proper. This would have been very difficult if a third party had acquired title at auction. Since it was apparently the second trust deed holder that acquired title, you can potentially contest the foreclosure, if you establish valid grounds. However, that is not an easy process, and you may still have issues regarding the first trust deed holder. If you are really considering contesting the already completed foreclosure, you should promptly seek legal advice to see if you have any basis to support your goal. You should also evaluate whether you will obtain any real benefit by contesting the foreclosure.

Answers on this site are only intended to provide general information. No attorney-client relationship is intended. Specific legal advice is only provided after a personal meeting in which detailed information about a client's particular circumstances and goals are obtained.

Asker

Posted

If you filed bankruptcy after the sale, would it protect you from the lst foreclosing; and how could the lst protect you from the UD that the second would file?

Posted

Yes, the 1st TD can foreclose on the 2nd TD holder, who is now the owner of the property (not you).

You cannot stop the 1st TD from foreclosing because you no longer own the property. Your filing for bankruptcy makes no difference.

Only in extremely rare circumstances (where you tendered the default prior to the 2nd's trustee sale) would you possibly be able to undo the 2nd's foreclosure and stop the 1st from foreclosing.

Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.

Posted

If you are not on title, but on the mortgage, they certainly can file an nod. However, they will have little chance of recovering anything from you. If you had a foreclosure by the 2nd, a bk can delay eviction, but not foreclosure which already occurred. Yes, a proper lawsuit can possibly save your home, given the right facts. We do that here.

No attorney client relationship is created by this response. Actual actions will depend upon detailed client interviews. Attorney is licensed in California.

Asker

Posted

How could the lst protect the original owner when the second files UD? Can't they protect the first and not allow the second to evict the original owner of the loan they are working with ?