1. There is a chance the sale has not happened.

2. If a sale has happened ,there is a very good chance your senior lender got the property back after bidding at the foreclosure sale - therefore, you should act before the lender sells the property to someone else. .

3. If you can prove the lender's "loan counselor" did mislead you, you may have some causes of action against the lender. However if this third party had nothing to do with the lender, you were probably dealing with an amateur and you may have causes of action against him, her or them.

4. The way I read the newly amended California Foreclosure Consultant law, no one but the lender or an California licensed attorney should have been helping you avoid foreclosure once a Notice of Default was filed. So if your lender was working with you directly - you may have leverage because you lender's agent mislead you .

If your lender was working with a third party - whether on a short sale or a loan mod - you might threaten the lender with the fact they were negotiating with someone in criminal violation of California foreclosure consultant law. (note - pay attention to the part in the act about the necessary bond and the part about the power of attorney. I do not see how someone could be negotiating on your behalf without being you attorney or representing you via a power of attorney. The typical authorization for documents would be on its face insufficient authority).

In short I am not aware of all your facts - but if you want to save your house - you may have some options.

Ally, you have some great answers here. I would strongly suggest you find out the status of your home and then contact an attorney for your actual rights in this matter.

I have Foreclosure Radar software where I can find out the status of your home for you and e-mail you the details. I promise to keep you contact information completely confidential as with all people that contact me.

If you don't want to contact me directly you can search the site to see if it is pre-foreclosure or auction date, or bank owned. Just put in your zip code, property type, bedrooms, and bathrooms to narrow your search down. While you will not be able to see full detail you should be able to determine property status.

The link to my foreclosure site is listed below:

Hi Ally,

There's really good information here. I had a similar experience that may be of interest. I was successful in postponing a trustee sale for a client. However, they didn't tell the person who has a contract to change the locks. He called to say he couldn't get in the gate! I explained that it was postponed and he said that happens all the time. He went away and verified it with the bank in a few days. I wonder how many times they change the locks on homes they don't actually own yet? Tisza gave really good details on all the possible scenarios if it did actually sell, so you need to figure out the true status of your home. It is true in dealing with the banks that the left hand doesn't know what the right hand is doing. Good luck to you!

Hi Ally,

First and foremost, are you sure that the sale actually took place? Have you had anyone check to see if a transfer of ownership was recorded? If you haven't, you really should (any Realtor can help you find this out free of charge by the way). There are a whole lot of poo-poo heads out there who are just looking for a chance to take advantage of folks. Remember, that when a property goes into Notice of Default status (the first stage of pre-foreclosure) that information is a matter of public record and it can be easily accessed by just about anyone who wants to get it and knows how. So, start by making sure that the knock on your door was by someone who knew what they were talking about. Now, on to some other information you might find useful...

Depending upon who bought your home you may be able to complete the modification after the fact and still save your home. If the home was purchased by the lender holding the note they may still be willing to work something out with you especially if they were the highest bidder for the home. After all, if no one else stepped up to the plate, working something out with you truly might be their best bet.

If the home was purchased by a third party and they are an investor purchaser (usually meaning someone who will not be living in the home themselves, or someone who owns multiple homes) then you may have "rights of redemption which could allow you to take the home back if you are able to clear the debt within a specified period of time.

If the home was purchased by someone who is not an investor and who intends to make it an owner occupied home then the sale most likely would stand and the thing that you still might want to negotiate for would be what they call "Cash For Keys" which is a payment given by the new owner to the existing resident (tenant or former owner) for leaving swiftly and peaceably without damaging the property.

Depending upon how long the sale took place, it might be possible to see who bought your home which would give you more information about what your options could be. I haven't personally handled any homeowner reinstatements myself but I do know some folks who have and I would be happy to try to put you in touch if you like. They don't charge anything for their assistance.

As for the deception, it really is more a case of ignorance than one of intention. The thing that most folks don't realize is that pursuing a loan modification does not, in and of itself stop or even slow down the foreclosure process. And when you really think about it, it probably shouldn't because the process takes a whole lot of time under the best of circumstances and having a foreclosure drawn out really doesn't benefit anyone in the grand scheme of things.

The funny thing is that although I understand why the clock keeps ticking, I really do think it is a stupid system especially because the loan mod, if it is indeed an option, is a much better solution for all concerned than just about any other might be - especially when you compare it to a foreclosure sale.

Disclaimer Alert - Not being either an attorney or fully versed in your situation, please take the above as it is intended "for informational purposes" and consider consulting a lawyer for official legal advice. Now, that being said, if you need any additional information or if there is any other way I can be of assistance, please feel free to get in touch and I will see what I can do.

Thank you for stopping by. Take care and have a great day!

Tisza Major-Posner, Realtor DRE#01784679, IVPG Realty, (909) 837-8922 Tisza(at)HomesByTIsza.com

I am really sorry to hear this. Unfortunately this is not the first time I have heard about something like this. We had a buyer who was scheduled to close on a purchase. On the day of the closing, the foreclosure company sold the property at auction for the bank. It is a case of the right hand at the bank not knowing what the left hand was doing. The short sale negotiator at the bank was just as surprised at the auction sale as was the seller and our buyer. I would suggest you speak to an attorney. I am guessing there is nothing you can do, but since I am not an attorney, I can't give legal advice. Our experience with bank employees indicates to us that they aren't crafty enough to be devious. All parties want to be helpful, but they just don't communicate with different departments. It is the perfect storm. No one knows what the guy next to them is doing, and you are left holding the bag for other people's incompetence. So sorry.

Dear Ally,

It is best to speak with a real estate atty. Unfortunately too often the people who work with the clients in loss mitigation for doing loan modifications don't speak with the foreclosure department. I have heard this way too often.

They may offer you cash for keys to vacate the property. I truly wish you all the best.

Denise Gleavey
Coldwell Banker
858-565-7777

Ally, I am not sure if you were working directly with the bank that held the note to your home, or if you were working with a loan modification service. This is really the wild wild west with lots of folks out there taking advantage of people in bad situations. If I knew more of your situation perhaps I could give you some better advice.

I am very sorry for your situation.