Foreclosures

 

Fraud Claim Can Survive Full Credit Bid. A full credit bid at a non-judicial foreclosure sale does not bar a fraud action by a lender against a third party (i.e., someone other than the borrower). Here, a lender claimed that it was misled by title companies (and others) into making certain loans secured by real property. The loans went into default and, ultimately, the lender purchased the security at the trustee’s sales for the full amount owed on the loans. Notwithstanding its full credit bids, the lender was allowed to sue third parties for intentional and negligent misrepresentation in connection with the loans. (Alliance Mortgage Company v. Rothwell (1995) 10 Cal.4th 1226.)


| Home | Back |