Foreclosure

Is foreclosure sale void when 'title' was in Lender's name prior to sale & borrower not on title tax records?

On 10/30/08 property was foreclosed, we got it rescinded, lender made several mistakes in rescission recordation. New Notice of default(NOD) was filed 02/02/11,new Notice of trustee sale( NOTS) was filed on 6/20/14. After, Lender recorded ‘foreclosure rescission' on 8/19/14 for previous sale in 2011. Lender conducted new sale on 10/06/14. Borrower contends that borrower was not in 'possession' of the property, therefore NOTS was defective, foreclosure was void. Rescission does not satisfy re-conveyance of title, NOTS is deficient. SALE IS VOID. Borrower was unable to refinance because title and public records reflected Lender name and that was a clear violation of homeowners rights? Borrower could not get prelim to enable them exercise legal options. Pls comment.

Nathan’s Answer

Why was borrower unable to get preliminary injunction? Did they try for TRO? The theory is just that, a legal theory. While it is laudable that rescission was achieved, and better for the case that title may not have been reconveyed properly, there is no guarantee this theory would work. California is still a non-judicial foreclosure state, and as a result, the procedures can be quite lax, even with the Homeowners' Bill of Rights increasingly firmly in place. Please consult with a real estate lawyer to discuss in detail.

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