one action rule - sale

Welcome to the California Mortgage Association: "Section 726(b) provides that the beneficiary must file a motion to determine the fair value of the property, and that this motion must be filed 'within three months of the date of the foreclosure sale.'

In this case, Paykar filed its motion more than three months after the date of the sheriff's sale, but within three months of the date that the sheriff's sale certificate was recorded. The beneficiary argued that the phrase 'within three months of the date of the foreclosure sale' could be interpreted to refer to the date that the sheriff's sale certificate was recorded.

The court of appeal rejected this argument. Section 726(b) makes reference to the 'foreclosure sale'; the court interpreted 'sale' to mean the formation of a binding contract to sell the property, i.e., 'when the hammer falls'. The court found one analogy when it noted that the fair market value of the property must be determined as of the date of the sheriff's sale. (Sao Paolo U.S. Holding Co. v. 816 South Figueroa, supra."