What Factors Do Courts Consider When Deciding If A Homeowner Can Challenge A Foreclosure Sale After The Sale Occurs?

In February 2014, the U.S. District Court for the Western District of Washington listed the following factors as relevant when courts consider whether to invalidate a foreclosure sale after the sale occurs:

  • whether a violation of the Deeds of Trust Act divested the trustee (who handles the foreclosure) of its authority to conduct the foreclose sale;
  • whether the borrower had an adequate opportunity to prevent the foreclosure;
  • whether the lender or the trustee caused unfairness or surprise;
  • whether the purchaser at the foreclosure sale was on inquiry notice of the procedural irregularities or was truly innocent and would be unfairly harmed if the foreclose sale were voided;
  • whether the sale price is grossly inadequate compared to the fair market value; and
  • whether the borrower promptly asserted his or her objections after the sale.

Mulachy v. Federal Home Loan Mortgage Corp., 2014 WL 504836, *4 (W.D. Wash. Feb. 2014).

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