Brief Fact Summary
Plaintiffs purchased a home via mortgage. Fifteen years later plaintiff lost his job and fell seven months behind on the mortgage. In an effort to avoid foreclosure, plaintiffs paid the back payments but failed to pay the legal fees and costs. The lender foreclosed and the house was sold at auction. The only bidder was a reprsentative for the lender who bid the exact amount owed on the mortgage. The lenders solder the property later that day for a sizeable profit.

Rule of Law and Holding
A mortgagee, therefore, must exert every reasonable effort to obtain a fair and reasonable price under the circumstances, even to the extent, if necessary, of adjourning the sale or of establishing %u201Can upset price below which he will not accept any offer. Inadequacy of price alone is not sufficient to demonstrate bad faith unless the price is so low as to shock the judicial conscience.

Topics
Property Acquisition

Subtopics
Mortgage