How to get compensation for reversal of sale?

I purchased property on 10/8 and already recorded.
As this property was for myself to move in, I alredy started moving and utilities, and enrolling kids, and painting job, cleaning, etc.
However, previous owner contacted me and said not to move, as there was an error in trustee sale. I contacted Recontrust and found out that 5% owner has filed a bankrupcy before trustee sale and there’s high chance of reversal of the sale even though Recon did not make a final/official decision yet.
I really don’t like to give up the property, any advice? If I have to give up, how can I get compensation for my suffering and damage? Please advise me

If you move in they’ll have to evict you even if the sale is reversed and you lose ownership. If the trustee does contact you and tell you they made a mistake and have to overturn the sale, be prepared. Explain to them that you relied on their sale, the deed has been recorded and you’ve made repairs and moved in. As a “bonafide purchaser for value”, tell them they’ll need to settle their mistake with the prior owner as you are not moving and you believe you will win in court if it comes to that. Let them know you’ll file a “lis pendens” tying the property up in court and that you’ll fight any eviction.

Just keep in mind that this approach may be little more than a bargaining tactic - I don’t want to give you false hope. Depending on the nature of the error they may be legally entitled to overturn the sale. That said, the lender held the sale in error and I believe you have a very good case for damages. The tactic above may not let you keep the house, but it will give you a better chance at getting a reasonable settlement. The attorneys that handle these things for the banks are tough, so stand your ground. Even if the law is on their side, its in their best interest to settle as the delays battling with you would be disastrous for them.