Rare Trustee Sale Reversal Returns over $350K Equity to Los Angeles Homeowner thanks to Consumer Defense Law Group
LOS ANGELES, CA, UNITED STATES, March 24, 2026 /EINPresswire.com/ -- In a rare and highly strategic post-auction victory, the Nonprofit Alliance of Consumer Advocates, in coordination with a Top Shelf Wrongful Foreclosure litigation Law firm has secured the rescission of a completed third-party trustee sale involving homeowner Linda Fields, restoring her ownership rights after the property was sold significantly below market value.
The property, located at 12395 Van Nuys Blvd Pacoima Ca 91331 was originally gifted to Ms. Fields by her relative, Carolyn Fields, on July 30, 1999. After obtaining a balloon loan in 2006, Ms. Fields fell into default in 2007 and remained going in and out of foreclosure for nearly two decades while seeking a permanent resolution from her lender.
On November 4, 2025, the property was sold at auction to a third-party bidder for $540,754.49—just one penny over the total debt owed. With an estimated market value of $900,000, the sale resulted in a devastating loss of over $350,000 in homeowner equity.
Just days before the sale, Ms. Fields had been referred to Nonprofit Alliance of Consumer Advocates, where a complete loss mitigation package was submitted in compliance with California’s Homeowner Bill of Rights. Despite this, the servicer allowed the foreclosure sale to proceed—highlighting a common issue with investor-owned loans, where layered ownership structures often delay or disrupt proper review.
Immediately following the sale, Nonprofit Alliance of Consumer Advocates referred the case to Consumer Defense Law Group, which filed Wrongful Foreclosure Litigation (Case # 25CHCV04195) in Los Angeles Superior Court, strategically naming both the servicer and the underlying investor.
As confirmed in a settlement agreement that was just proposed today, the trustee sale has been officially rescinded, and—critically—the actual investor of the loan has agreed to conduct a direct, attorney-monitored loss mitigation review, effectively bypassing the servicers sole decision.
“This is exactly why we identify and name the true owner of the loan early,” said Tony Cara of Consumer Defense Law Group. “When you get to the decision-maker in time you can actually stop the unnecessary foreclosure damage of a perfected auction sale to force meaningful resolution.”
Attorney Joaquin Nolet, Legal Services Director for Nonprofit Alliance of Consumer Advocates, added: “Trustee Sale Reversals after a third-party purchase are extremely rare—especially when a home sells hundreds of thousands below market value. This outcome reinforces our mission of Homeownership Preservation and Affordable Housing and ensuring homeowners receive a fair and lawful review.”
Nonprofit Alliance of Consumer Advocates further emphasized that in many prior cases, the organization has successfully helped foreclosed homeowners repurchase their homes directly from trustees or even from third-party highest bidders, through coordinated intervention with private investors, experienced homeownership preservation real estate brokers, and direct lender alliances working in alignment for the client’s benefit.
While the investor-level review is underway, Nonprofit Alliance of Consumer Advocates will simultaneously assist Ms. Fields in exploring alternative preservation strategies, including Family Gift of Equity transfers and identifying private investors capable of reinstating the loan, ensuring multiple paths to avoid foreclosure just in case. “Better to be overly prepared and not need it than the contrary” says Attorney Joaquin Nolet.
The property, located at 12395 Van Nuys Blvd Pacoima Ca 91331 was originally gifted to Ms. Fields by her relative, Carolyn Fields, on July 30, 1999. After obtaining a balloon loan in 2006, Ms. Fields fell into default in 2007 and remained going in and out of foreclosure for nearly two decades while seeking a permanent resolution from her lender.
On November 4, 2025, the property was sold at auction to a third-party bidder for $540,754.49—just one penny over the total debt owed. With an estimated market value of $900,000, the sale resulted in a devastating loss of over $350,000 in homeowner equity.
Just days before the sale, Ms. Fields had been referred to Nonprofit Alliance of Consumer Advocates, where a complete loss mitigation package was submitted in compliance with California’s Homeowner Bill of Rights. Despite this, the servicer allowed the foreclosure sale to proceed—highlighting a common issue with investor-owned loans, where layered ownership structures often delay or disrupt proper review.
Immediately following the sale, Nonprofit Alliance of Consumer Advocates referred the case to Consumer Defense Law Group, which filed Wrongful Foreclosure Litigation (Case # 25CHCV04195) in Los Angeles Superior Court, strategically naming both the servicer and the underlying investor.
As confirmed in a settlement agreement that was just proposed today, the trustee sale has been officially rescinded, and—critically—the actual investor of the loan has agreed to conduct a direct, attorney-monitored loss mitigation review, effectively bypassing the servicers sole decision.
“This is exactly why we identify and name the true owner of the loan early,” said Tony Cara of Consumer Defense Law Group. “When you get to the decision-maker in time you can actually stop the unnecessary foreclosure damage of a perfected auction sale to force meaningful resolution.”
Attorney Joaquin Nolet, Legal Services Director for Nonprofit Alliance of Consumer Advocates, added: “Trustee Sale Reversals after a third-party purchase are extremely rare—especially when a home sells hundreds of thousands below market value. This outcome reinforces our mission of Homeownership Preservation and Affordable Housing and ensuring homeowners receive a fair and lawful review.”
Nonprofit Alliance of Consumer Advocates further emphasized that in many prior cases, the organization has successfully helped foreclosed homeowners repurchase their homes directly from trustees or even from third-party highest bidders, through coordinated intervention with private investors, experienced homeownership preservation real estate brokers, and direct lender alliances working in alignment for the client’s benefit.
While the investor-level review is underway, Nonprofit Alliance of Consumer Advocates will simultaneously assist Ms. Fields in exploring alternative preservation strategies, including Family Gift of Equity transfers and identifying private investors capable of reinstating the loan, ensuring multiple paths to avoid foreclosure just in case. “Better to be overly prepared and not need it than the contrary” says Attorney Joaquin Nolet.
J. De La Vega
NonProfit Alliance of Consumer Advocates
+1 855-622-2435
email us here
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