California Supreme Court: Trustee may Declare Nonjudicial Sale Void due to Certain Irregularities

Plaintiff had placed the only bid at the nonjudicial foreclosure auction and auctioneer announced property sold to Plaintiff. Plaintiff made cashier's check payment. Two days later Plaintiff was informed the sale was void. Plaintiff brought quiet title action against Trustee to receive title of property sold in nonjudicial foreclosure sale. California Supreme Court held: Trustee has discretion to void the sale prior to issuing deed, because the wrong opening bid had been communicated to auctioneer, and this amount was less than 10% of the actual amount of debt.
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.