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Re: Depends on whether adequate notice was given.

Posted by Ward-CA- on January 07, 2002 at 6:36 PM

In Reply to: foreclosure v. probate posted by Andy on January 07, 2002 at 11:09 AM

: Hi ward,
: I need help making sense of the following "actual" scenario. The facts are:
: Property location: Southern California
: Lien facts (in order of priority):
: 1st TD= 83,250
: 2nd TD= 136,000
: HOA Lien= 1,317

: The owner past away and the estate was in probate. The following then occurred:
: April-2001: 2nd TD filed a NOD
: July-2001: 2nd TD filed a NTS (sale date had numerous postponements)

: November-2001: Probate sale(public auction)took place. Property was sold to "person P" for $170K. Court confirmation set for February-2002

: January 2002-Foreclosure trustee holds sale (foreclosing 2TD) and sells property to 3rd party (person F)for $150K

: MY questions are?
: a) Who owns property
: b) both "person A" and "person F" have surrendered money to various trustee's, what happens to the person and his surrendered dollars that does NOT own property?

: Thanks in advance for sorting this out.
: Andy

=•=•=•=•=•=•=•=•=•=•=

Andy,

a). If the party in charge of the probate was one of the parties given notice by the foreclosing trustee then the current owner would the foreclosure buyer. However if the party in charge of the probate didn’t know that the foreclosure was taking place, for lack of notice, then the trustee’s sale is void and the current owner would be the probate buyer.

b). The losing owner would get their money back due to the error of either the foreclosure trustee or the administrator/executor of the estate. It’s obvious that the owner who doesn’t get title is innocent of the error committed either by the foreclosing or by the error of the estate’s administrator/executor in not paying attention to the notice sent to them by the foreclosing trustee..

It’s an interesting set of facts. It is almost the same as a case down here about 5 years ago between a foreclosure pro named Norm Diamond and the public administrator in the Estate of Bates. Norm bought the property at the trustee’s sale. The public administrator claimed the trustee sale to Norm was void for lack of notice to him. However the public record had nothing to indicate that the trustee was to notify the administrator, and the administrator was receiving all the mail of the deceased, including all the foreclosure notices addressed to Ms. Bates. Seems that the administrator overlooked opening Ms. Bates mail after her death.

In any case the trial judge wanted the trustee’s sale reversed and so ruled that the foreclosing trustee was remiss in not realizing that Ms. Bates was dead and that the notices being sent should have gone directly to the public administrator.

Norm Diamond appealed the trial judge's ruling to the appellate court and he lost. Cost him about $40K and he bowed out to lick his wounds.

Hope this helps.

P.S. Who was the foreclosure buyer?


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