Re: Rescission of Sale - Refund plus interest

Actually the issue was the sale was rescinded a month AFTER the trustee deed was issued to us and recorded. The reason for rescission was not notification - the foreclosure process was in compliance with foreclosure processes and notification requirements.

Rather, the trustee/lender (NYM) who foreclosed on the loan was getting sued by another lender (ALS) who claimed they had the seniority, in spite of what the title record showed. Aurora claims they paid off the NYM loan and that it should have been closed and reconveyed. So Aurora wants the courts to make it senior.

Although we do not consider this a 'void' sale, but a dispute between two parties that should have their title insurance settle it, but we are willing to settle and let the rescinded sale stand.

In California there are many court opinions insisting on refund plus interest on rescinded foreclosure sales. However, no one ever states if and why the 7 percent interest rate is used.