Oh, and FIH, in CA, a “foreclosure remedy” is not negotiable. Virtually all money loaned on real property is secured by a trust deed which has the explicit language in it mirroring state law giving the beneficiary the right to foreclose for non-payment. The trustor(s) MUST sign the TD if they want the money.

Explicit guidelines, long spelled out in state law, detail the procedure for foreclosing a CA trust deed. The PROBLEM was that in recent years, lenders loaning in CA didn’t follow it. They didn’t follow it (and let their defaulting trustors squat for months/years) because they thought they would get reimbursed for their trouble by the Federal Govm’t for allowing them to squat. They didn’t get fully-reimbursed because the losses were too great (all due to “lender malaise”). By allowing prolonged “squatting” and then approving subsequent SS offers and some REO offers which were often below land cost, lenders screwed nearly EVERY surrounding property owner for miles around. Their inaction and negligent action (approving SS and REO offiers 50%+ off in very established areas) caused longtime property owners’ (who were NEVER “underwater”) values to fall precipitously.

In my mind, (both ignorant and calculating) buyers, “sellers” (and their greedy, unethical agents) and lenders were ALL to blame equally for this mess.