Buyer defaulted the contract to return back the property

Your story leaves lots unsaid. It sounds like you sold your home for no money, just the buyer's promise to pay the mortgage, taxes and insurance, and if he didn't, then you reserved the right to take back the home. That's a common law mortgage. Unlike a deed of trust, it does not include the right to foreclose by conducting a private auction. Instead, you must file a lawsuit to foreclose, and even if you win, the defendant has the right to redeem the property and get it back by paying the price paid at the court foreclosure sale, for a whole year. That's why no one does mortgages in California. It sounds like you're lucky, and the buyer has paid off the mortgage. That means it's no longer on your credit report, and you are able to buy a home and take out a loan for half or more of the purchase price. You probably couldn't while that loan was still a debt against your credit. I'm not clear on why you want to sue. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack