b'A Lesson in Buyers Remorse Matson v. S.B.S. Trust Deed Networkby byCathy K. Robinson, Esq. T. Robert Finlay, Esq.Wright, Finlay & Zak, LLP Wright, Finlay & Zak, LLPT he issue of a lenders authorityTrust Deed Network,1 the California Courtand believed it was a senior lien foreclosing and right to pursue foreclosure onof Appeal for the Fourth District heldon the property.Matson attended the defaulted residential mortgage loansthat a party is not entitled to rescissiontrustees sale, along with other bidders, has become a subject of national interest.of a nonjudicial foreclosure sale absentand ultimately purchased the property The courts are clogged with borrowersevidence of irregularity, fraud, or unfairnessfor the winning bid of $502,000.Matson asking does this lender have the right toin the nonjudicial foreclosure noticesubsequently realized that the foreclosing foreclose on my home?Another issueand sale proceedings.Therefore, a baddeed of trust was in second position, not making its way through the court systembusiness decision or buyers remorse isfirst, and there was minimal equity in the is a third-party buyers right to rescindnot enough to set aside a sale. property.As a result, Matson was faced their purchase of property at a foreclosurewith taking a big loss after paying off the sale.Foreclosed homes tend to be soldIn Matson, the borrower defaulted on a1st lien on his newly purchased property.at a low price, and therefore purchasersjunior lien and the beneficiary commenced at a trustees sale are usually looking forforeclosure proceedings by recording aThe foreclosing trustee recorded the a bargain.Whether the purchaser is anNotice of Default and Election to Sell onTrustees Deed Upon Sale (TDUS) and investor, looking to flip the property andthe property.The beneficiary notifiedmailed it to Matson.Matson returned the make a return on their investment, or athe trustee that a total of $414,501.62TDUS with a notice of rejection, and sued homeowner looking to purchase a homewas due on the note and deed of trust,the foreclosing beneficiary and trustee that is otherwise outside of their priceand authorized a flat opening bid ofin San Diego Superior Court to rescind range, purchasing a foreclosed property$71,000.Matson, a third party buyer,the sale.is not for the faint of heart.Despite this,obtained notice of the potential foreclosure purchasers at foreclosure sales often doof the property from PropertyRadar.Matsons primary arguments were (1) the so on a shotgun basis, without doingPropertyRadar listed the loan as being ininequity of price prejudiced Matson and their due diligence, and then when theposition 1.Matson obtained a profile oftherefore he was entitled to set aside the transaction is not fruitful, buyers attemptthe property from a title company aboutnonjudicial foreclosure sale; (2) the trustees to rescind the sale by suing the foreclosingan hour before the trustees sale, but didrecording of the TDUS after Matsons lender, loan servicer, and/or the trustee.not read the full profile. He only verified the In the recent decision in Matson v. S.B.S.amount of the loan and the notice of sale,continued on page 18Points of InterestSummer 2020Page 17'