Re: Recission of Trustees Deed for "Moral Reasons"

Lughead: Over the past few years, several posters on this board have posted their opinion that a rescission of trustee's deed is one of the risks and the cost of doing business as a trustee' sale investor. While indeed it is, the current foreclosure environment in CA is providing lots of opportunity to look the issue more closely.

The trustee's sale is final, and your purchase appears to be perfected by a properly executed trustee's deed. There is some relevant case law validating rescissions that do not appear to apply to your situation (noticing issues and borrowers attempts at tendering). It is between the lender, trustee and borrower to decide who is going to make whom whole. I say let the trustee find the relevant case law that supports their rescission. In the meantime do not agree to it. If it were me, I would have not provided costs to the trustee or lender's lawyer. I would let the lender and trustee know that you believe there are no valid grounds for the rescission and that you will proceed with a quiet title and lis pendens and the UD immediately unless they agree to a settlement with you. And, again if it were me, I'd ask for real money. This settlement offer should be in writing and there should be no more phone calls to the trustee or lender attorney. This costs you nothing. However, from your posts, I think you might be better off with the help of an attorney. Best of success with it, Kristine