QUESTION
Is security first rule irrelevant now that the security is gone?
Asked on Aug 10th, 2016 on Foreclosures - California
More details to this question:
Bank reconvened property and I sold it to arm's length buyer. They filed a NOD, then initiated personal lawsuit. Since security is gone do they have to cancel the NOD?
1 ANSWER
1 Award
Yes, if the buyer was a bona fide buyer who paid fair value and who had no notice of the lender before his/her purchase. But there may be some applicable exceptions. This is a VERY complicated area under Ca. foreclosure law, so make sure you consult with a lawyer who is very familiar with Ca foreclosure law, esp. CCP 726.
Answered on Sep 06th, 2016 at 12:35 PM