Q: What do I need to do next? Received Notice of Trustee's Sale on a property that we have a lien against.

A: Yes, and no. Assuming your lien is validly perfected, you can advance money to the senior lien(s) to reinstate it, which will stop them from foreclosing this time around, and then initiate your own foreclosure process. There is so much to consider before you do anything like that, without much time to make your decisions. If you advance money to cure the senior lien, you can add that amount into your own lien.

The key consideration here is the amount of equity in the property. There is no point in advancing money and doing your own foreclosure unless there is a generous cushion of equity in the property. Even if you do not foreclose your lien, you may be able to sue the owner for the amount that is owed to you - but again not always worth the cost and aggravation.

Assuming you are entitled to sue, $20k is probably too small to justify the hiring of a lawyer. However, you can sue for up to $10k in small claims court, meaning that you will have to agree to waive the right to recover all sums in excess of $10k, thus giving up half the value of your claim. But at least you don't have to pay lawyer fees. But even if you win there is never a guarantee of collecting your judgment.

A: You are probably junior to the foreclosing secured debt. You can bid at the sale to protect your interest. But a sale without a surplus means your lien against the land is extinguished although the debt against the individual is still existent. If there is a surplus, trustees are notorious for paying it to their actual clients that hire them.

A: First, review the Notice of Trustee's Sale carefully to understand the timeline and process involved in the sale of the property. Determine the date of the sale and any deadlines for action.

Next, assess your options for recouping the loss of $20,000 in unpaid building materials. Consider consulting with an attorney experienced in real estate and collections law to explore legal avenues available to you. You may have the option to pursue a lawsuit against the property owner for breach of contract or pursue a lien foreclosure action to recover the debt.

Gather all relevant documentation to support your claim, including invoices, contracts, and any correspondence with the property owner regarding the unpaid debt. Your attorney can advise you on the best course of action based on the specifics of your situation and California law. Taking prompt and decisive action is crucial to protect your interests and maximize your chances of recovering the debt owed to you.