Bank's Agreement To Accept Late Loan Payment Invalidates Trustee's Sale (Even If Trustee Was Unaware)
Question: If a bank accepts a late loan payment and reinstates a loan - but doesn't tell the trustee, who conducts the sale and delivers a trustee's deed with all necessary recitals - is the sale still invalid?
Answer: Yes, according to the court of appeal in Bank of America, N.A. v. La Jolla Group II, 05 C.D.O.S. 4271 (May 19, 2005).
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