In a case in Westchester County Justice Lawrence Ecker, sitting in a Supreme Court foreclosure part, ruled due to a mistake a party’s home was sold and the sale should be set aside.
Referee Sells the Property
The sale of the property was conducted by a Referee. The homeowner had spoken to the bank’s lawyer and was under the impression the sale was not going to move forward. However, the sale did move forward and the referee sold the property to the successful bidder. The bidder provided the referee with a deposit. However, a deed was not yet provided to the successful bidder.
Communication Issues
Justice Ecker found the mistake was not related to a one-time communication. There had been communications over a two-month period and the homeowner’s attorney was assured the scheduled sale would not be moving forward. The reason for the sale not moving forward was the bank had acknowledged the homeowner had completed all the steps required for the reinstatement of the mortgage.
Justice Ecker found as a matter of equity and good conscious, the sale should be set aside. Justice Ecker also ruled the purchaser should be entitled to a refund of his deposit plus interest.
Conclusion
Even after a home is sold it is still possible to bring a motion to the court where the foreclosure lawsuit is pending, to set the foreclosure sale aside if good cause can be presented to the court.
