The Importance of Proactive Discovery in Post-Foreclosure Unlawful Detainer Actions

At The Ryan Firm, we are dedicated to helping you efficiently reclaim your property following a foreclosure.  Either as foreclosing lender, or a property investor, the world of post-foreclosure evictions in California has drastically changed in recent years.  Handling every matter with a deft attention to detail, while understanding the larger “chess board” is something in which that the attorneys of The Ryan Firm take immense pride.

When pursuing a post-foreclosure, proactive discovery is critical. Engaging in early and thorough discovery not only streamlines the eviction process but also safeguards against disruptions by post-judgment claimants who may challenge your right to possession. Below, we explain why proactive discovery is essential and how it ensures the best outcome for your case.

Understanding Post-Foreclosure Unlawful Detainer

After a property is sold at a foreclosure sale and title is duly perfected, the new owner (typically the lender or a third-party purchaser) may need to initiate an unlawful detainer action to remove holdover occupants, such as former owners or tenants. These cases, governed by CCP § 1161a(b)(3), are designed to be expedited but can face complications if occupants raise defenses or if post-judgment claimants (e.g., tenants (real or fake), or third parties asserting interests) attempt to intervene or challenge the eviction.

Why Proactive Discovery Matters

Discovery—the process of gathering evidence and information from the opposing party—is a powerful tool in unlawful detainer actions. By proactively conducting discovery, you can anticipate and address potential issues before they escalate, ensuring a smoother path to eviction. Here’s why early discovery is critical:

1. Verifying the Validity of the Foreclosure Sale

   
   

   Occupants often challenge unlawful detainer actions by alleging irregularities in the foreclosure process, such as improper notice or defective sale procedures. Proactive discovery, such as requesting documents or deposing the occupant, allows you to confirm the validity of the foreclosure sale and gather evidence (e.g., trustee’s deed, sale notices) to counter such defenses early in the case.  You should not solely rely on presumptions to prove your case.

   
   

2. Identifying Potential Claimants Early

   
   

   Post-judgment claimants, such as tenants with alleged lease rights or third parties claiming an interest in the property, can disrupt eviction proceedings by entering the case, even after judgment. Through discovery tools like interrogatories or requests for production, you can identify potential claimants and their claims before judgment, allowing you to address them within the unlawful detainer action or preemptively eviscerate their claims.

   
   

3. Streamlining the Case for Efficiency

   
   

   Unlawful detainer actions are intended to be fast-tracked, but disputes over facts (e.g., proper service of the 3-day notice to quit or the occupant’s status) can delay resolution. Proactive discovery helps you gather critical evidence—such as proof of notice service or the occupant’s lack of legal rights—early, enabling you to file for summary judgment or resolve the case quickly at trial.

   
   

4. Mitigating Post-Judgment Challenges

   
   

   Post-judgment claimants may attempt to vacate the eviction judgment after you obtain a hard-fought judgment and writ of possession. By conducting thorough discovery during the case, you can uncover and address these issues beforehand, reducing the risk of post-judgment motions or collateral attacks that could delay eviction or require additional litigation.

   
   

5. Protecting Against Tenant Protections

   
   

   If the occupant is a tenant, they may claim protections under federal laws (e.g., the Protecting Tenants at Foreclosure Act, if applicable) or local ordinances (e.g., rent control in cities like San Francisco or Los Angeles). Discovery allows you to ascertain the tenant’s lease status, whether it predates the foreclosure, and whether extended notice periods apply, ensuring compliance and avoiding surprises.

   
   

How We Can Help

At The Ryan Firm, our experienced litigation team is well-versed in navigating post-foreclosure unlawful detainer actions, recovering over $100,000,000.00 in real estate for our clients in the past several years.

If you are a property owner facing challenges in a post-foreclosure eviction, let us help you “stop the games” and achieve victory.