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Article: Foreclosure sale set aside when purchase price was grossly inadequate because of mortgagee's innocent mistake.(Recent Court Decisions)
- Article from:
- Appraisal Journal
- Article date:
- September 22, 2008
CopyrightCOPYRIGHT 2008 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When a mortgagee's innocent mistake caused foreclosed property to be sold at a grossly inadequate price, the foreclosure sale must be set aside to prevent injustice, according to the District Court of Appeal of Florida.
Long Beach Mortgage Corporation (Long Beach) held a mortgage on real property in Martin County that went into foreclosure. After Long Beach and the other mortgagees agreed on the relative priority of their mortgages, Long Beach obtained a foreclosure judgment for a credit bid of $716,239.60 and set the foreclosure sale for May 22, 2007, at 10:00 a.m. Long Beach intended to bid on the property up to its appraised value of $500,000, and its lawyer ...