Sonoma County, California No Longer Allowing Trustee’s Sales
On County-Owned Property

By letter dated December 22, 2009, the County of Sonoma, Real Estate Division, announced that effective March 1, 2010, the County will no longer allow trustee’s sales to be conducted at 575 Administration Drive, Santa Rosa, CA or on any other County-owned property.
Read a copy of the letter from the County

Phil Adleson, Esq., UTA Corporate Counsel noted that, “This could have a major impact on previously noticed trustee’s sales, postponed sales and could result in numerous republications. Notwithstanding that fact that County property has been used as a centralized location for trustee’s sales for years, the County asserts that it is now concerned that trustee’s sales block access to public buildings and that conducting sales on County property violates its rules on the use of public property for a commercial enterprise. As we have done in other counties, I would hope, that this issue could be resolved through a dialog with the County resulting in a mutually beneficial solution. If the trustees must select alternate public locations (non-county owned property) for trustee’s sales, a number of unintended consequences are likely to occur. Since trustee’s sales will likely be conducted at a number of public locations (i.e., spread out), bidders will have difficulty attending all sales, reducing competitive bidding at trustee’s sales. Less competitive bidding will reduce trustee’s sale prices which, in turn, will likely reduce property values in Sonoma County, property tax revenues to the County and surplus proceeds that by law are generally distributed to the foreclosed owner or junior lienholders. One would almost think the County’s new rule is more politically motivated rather than practically thought out.”

UTA’s Legal Resources Committee will consider a response to deter, delay or mitigate this proposed action by the County. Hopefully, a dialog with the County will make considering litigation unnecessary. Any member with suggestions regarding this issue (i.e., relocating or simply suggestions on how trustee’s sale can be conducted without interfering with access to county property), is asked to contact contact Phil Adleson, UTA’s Corporate Counsel or Martin McGuinn, UTA’s Legal Resources Committee Chair.