Practice point: In the exercise of its equitable powers, a court has the discretion to set aside a foreclosure sale where there is evidence of fraud, collusion, mistake or misconduct.
Practitioners should note that, absent such conduct, the inadequacy of a price is an insufficient reason to set aside the sale unless the price is unconscionably low.
Case: Astoria Fed. Sav. & Loan Assoc. v. Hartridge, NY Slip Op 00181 (2d Dept. 2009)
The opinion is here.
Tomorrow’s issue: Res judicata.
